APICS Demand Management 2

Question 1

Which technique smooths out random demand variation by averaging demand over several periods?

Accepted Answer

Moving average

Answer

Moving average calculates the mean demand over a fixed number of prior periods to dampen random fluctuations.

Question 2

In demand management, what is 'demand shaping'?

Accepted Answer

Using pricing, promotions, or incentives to influence customer demand

Answer

Demand shaping involves actively influencing customer demand through pricing, promotions, or product offerings to better align demand with supply capacity.

Question 3

What is the primary purpose of a sales and operations planning (S&OP) process?

Accepted Answer

To balance supply capabilities with demand requirements across the enterprise

Answer

S&OP aligns supply and demand plans across functions to create one integrated business plan.

Question 4

Which demand pattern is characterized by a consistent upward or downward movement in demand over time?

Accepted Answer

Trend

Answer

A trend reflects a long-term directional movement in demand, either increasing or decreasing over time.

Question 5

A company uses a tracking signal to monitor forecast accuracy. What does a tracking signal exceeding control limits indicate?

Accepted Answer

A systematic bias exists in the forecasting model

Answer

A tracking signal outside control limits signals that cumulative forecast error is biased in one direction, indicating the model needs revision.

(APICS) American Production and Inventory Control Society Certified Practice Test

(APICS) American Production and Inventory Control Society Certified Practice Test

APICS Demand Management 2