CDPP S&OP Process Management

Question 1

What are the key steps in the Sales and Operations Planning (S&OP) cycle?

Accepted Answer

Data gathering, demand planning, supply planning, pre-S&OP meeting, and executive S&OP meeting

Answer

Only a monthly sales meeting

Answer

A single annual planning session

Answer

Only financial budgeting activities

Question 2

What is demand shaping and how does it differ from demand forecasting?

Accepted Answer

Demand shaping actively influences demand through pricing, promotions, and incentives; forecasting passively predicts it

Answer

They are identical concepts

Answer

Demand shaping only works for new products

Answer

Forecasting is proactive while shaping is passive

Question 3

What is consensus forecasting?

Accepted Answer

A process where multiple stakeholders collaborate to create a single agreed-upon forecast

Answer

When all forecasting software agrees on a number

Answer

A forecast that everyone automatically accepts

Answer

Using only the sales team's forecast

Question 4

What is the role of demand sensing in modern demand planning?

Accepted Answer

Using real-time signals like POS data and social media to detect short-term demand changes

Answer

A physical sensor on retail shelves

Answer

Employee intuition about demand trends

Answer

Only relevant for technology companies

Question 5

How should new product demand be forecasted without historical data?

Accepted Answer

Using analogous products, market research, expert opinion, and test market data

Answer

New products cannot be forecasted and should be ignored

Answer

Using the average demand of all existing products

Answer

Waiting until 12 months of sales data exists

Question 6

What is forecast value add (FVA) analysis?

Accepted Answer

Measuring whether each step in the forecasting process actually improves accuracy compared to a baseline

Answer

Adding monetary value to each forecast

Answer

A method for calculating inventory value

Answer

Evaluating the financial impact of forecast errors