CSCP FREE Certified Supply Chain Professional (CSCP) Demand Management and Forecasting Questions and Answers 5

Question 1

Which statement reflects a basic principle of forecasting?

Accepted Answer

Forecasts for aggregated product groups are generally more accurate than for individual items

Answer

Aggregation lets random errors offset, so family-level forecasts are more accurate than item-level ones.

Question 2

What is the primary objective of sales and operations planning (S&OP)?

Accepted Answer

Balancing aggregate demand and supply and aligning them with the financial plan

Answer

S&OP is a cross-functional process that balances demand and supply at the aggregate level and ties operations to business and financial plans.

Question 3

A product's tracking signal has moved to +5.2 when the control limits are ±4. What does this most likely indicate?

Accepted Answer

The forecast is biased and the model should be reviewed

Answer

A tracking signal outside its limits signals persistent bias, meaning the forecast method needs review.

Question 4

Using weights of 0.5, 0.3, and 0.2 (most recent first) and demand of 100, 80, and 60 units (most recent first), what is the weighted moving average forecast?

Accepted Answer

86

Answer

0.5 × 100 + 0.3 × 80 + 0.2 × 60 = 50 + 24 + 12 = 86.

Question 5

What best describes demand sensing?

Accepted Answer

Using near-real-time downstream data such as POS and orders to refine short-term forecasts

Answer

Demand sensing uses current downstream signals to improve very short-horizon forecast accuracy.

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 5