CSCP FREE Certified Supply Chain Professional (CSCP) Demand Management and Forecasting Questions and Answers 3

Question 1

A product's running sum of forecast errors (RSFE) is 60 units and its mean absolute deviation (MAD) is 15 units. What is the tracking signal?

Accepted Answer

4

Answer

Tracking signal = RSFE / MAD = 60 / 15 = 4.

Question 2

Last period's forecast was 100 units, actual demand was 120 units, and the smoothing constant (alpha) is 0.2. What is the new exponentially smoothed forecast?

Accepted Answer

104

Answer

New forecast = 100 + 0.2 × (120 − 100) = 104.

Question 3

Average monthly demand across the year is 500 units, and July demand averages 650 units. What is July's seasonal index?

Accepted Answer

1.30

Answer

Seasonal index = period average / overall average = 650 / 500 = 1.30.

Question 4

A company is launching a completely new product category with no sales history. Which forecasting technique is most appropriate?

Accepted Answer

Delphi method using expert panels

Answer

Qualitative methods such as Delphi are used when no historical data exists for quantitative models.

Question 5

A forecast that is consistently higher than actual demand will most likely result in which outcome?

Accepted Answer

Excess inventory and carrying costs

Answer

Persistent over-forecasting is a bias that drives excess production and inventory.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP FREE Certified Supply Chain Professional (CSCP) Demand Management and Forecasting Questions and Answers 3