APICS Demand Management 3

Question 1

Which type of forecasting relies on the opinions of executives, sales staff, or customers rather than historical data?

Accepted Answer

Qualitative forecasting

Answer

Qualitative forecasting methods, such as the Delphi method or market research, use human judgment and expert opinion when historical data is unavailable or insufficient.

Question 2

A demand planner notices that sales of sunscreen spike every summer. This is an example of which demand pattern?

Accepted Answer

Seasonal

Answer

Seasonality refers to predictable, repeating demand fluctuations tied to the time of year or calendar events.

Question 3

What does Mean Absolute Deviation (MAD) measure in demand forecasting?

Accepted Answer

The average of absolute differences between forecasted and actual demand

Answer

MAD averages the absolute values of forecast errors, providing a straightforward measure of forecast accuracy in the same units as demand.

Question 4

In which scenario would a company most likely use a 'make-to-stock' demand fulfillment strategy?

Accepted Answer

Standard consumer goods with short customer tolerance times

Answer

Make-to-stock is used when products are standardized and customers expect immediate availability, so goods are produced in anticipation of demand.

Question 5

Which term describes the practice of withholding customer orders to ship in a subsequent period to meet a sales quota?

Accepted Answer

Channel stuffing

Answer

Channel stuffing involves artificially inflating sales by pushing excess product to distributors or retailers, distorting true demand signals.

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

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

APICS Demand Management 3