CIM Demand Forecasting & Supply Planning 3

Question 1

In a Make-to-Stock (MTS) environment, the master production schedule (MPS) is primarily driven by:

Accepted Answer

Demand forecasts

Answer

In MTS environments, production is planned ahead of orders based on demand forecasts, since products are built to anticipated demand.

Question 2

Which planning horizon is typically used for a Sales & Operations Planning (S&OP) process?

Accepted Answer

3–18 months

Answer

S&OP typically covers a rolling 3–18 month horizon, balancing supply capacity with aggregate demand plans at a monthly or quarterly level.

Question 3

A SKU has the following data: Average demand = 100 units/week, lead time = 3 weeks, service level Z = 1.65, and demand standard deviation = 20 units/week. What is the safety stock?

Accepted Answer

57 units

Answer

Safety stock = Z × σ × √LT = 1.65 × 20 × √3 ≈ 1.65 × 20 × 1.732 ≈ 57 units.

Question 4

Collaborative Planning, Forecasting, and Replenishment (CPFR) is best described as:

Accepted Answer

A retailer-supplier process for jointly developing forecasts and replenishment plans

Answer

CPFR is a business practice where trading partners share data and jointly create forecasts and replenishment orders to improve supply chain efficiency.

Question 5

Which type of demand is directly driven by customer orders and is independent of other items?

Accepted Answer

Independent demand

Answer

Independent demand originates externally from the market and is not tied to the production of any other product; it must be forecasted.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Demand Forecasting & Supply Planning 3