CIM Demand Forecasting & Supply Planning 5

Question 1

A product with highly erratic, low-volume demand (e.g., spare parts ordered once every few months) is best described as having:

Accepted Answer

Lumpy or intermittent demand

Answer

Lumpy or intermittent demand is characterized by irregular, infrequent order occurrences with high variability between periods of zero demand.

Question 2

In demand planning, a 'consensus forecast' is best achieved through:

Accepted Answer

Combining statistical forecasts with cross-functional business input (S&OP)

Answer

A consensus forecast integrates statistical models with input from sales, marketing, finance, and operations through the S&OP process to produce a single agreed-upon number.

Question 3

When safety stock is set using the 'days of supply' method rather than a statistical approach, the main risk is:

Accepted Answer

Safety stock does not account for actual demand variability

Answer

The days-of-supply method applies a fixed coverage rule without considering actual demand variability, potentially resulting in over- or under-stocking.

Question 4

Which planning tool calculates time-phased net requirements for components based on the master production schedule and bill of materials?

Accepted Answer

MRP (Material Requirements Planning)

Answer

MRP uses the MPS, BOM, and inventory records to calculate when and how much of each component to order or produce.

Question 5

A supply planner reduces the reorder point for a high-velocity item. The most likely consequence is:

Accepted Answer

Higher risk of stockouts

Answer

Lowering the reorder point means replenishment is triggered later, reducing the time buffer and increasing the probability of running out of stock before the order arrives.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Demand Forecasting & Supply Planning 5