CLA Demand Planning & Forecasting 3

Question 1

New product forecasting is particularly challenging because:

Accepted Answer

There is no historical sales data to use as a baseline

Answer

Suppliers always demand long lead times for new SKUs

Answer

Demand planning software cannot model new items

Answer

Regulatory approvals prevent early forecasting

Question 2

A seasonal index value of 1.25 for a particular month indicates that demand in that month is expected to be:

Accepted Answer

25% above the average monthly demand

Answer

25% below average monthly demand

Answer

Equal to the prior year's demand for that month

Answer

125 units regardless of average demand

Question 3

Which metric measures the percentage of customer orders that are shipped complete and on time from available inventory?

Accepted Answer

Order fill rate

Answer

Forecast bias

Answer

Inventory turnover

Answer

Days of supply

Question 4

Demand sensing uses which type of data to generate short-term, highly accurate near-term forecasts?

Accepted Answer

High-frequency point-of-sale and shipment data

Answer

Annual budget plans and executive sales targets

Answer

Historical averages from the past five years

Answer

Supplier production schedules and lead times

Question 5

Which type of demand is derived from the production requirements of a parent product rather than direct customer orders?

Accepted Answer

Dependent demand

Answer

Independent demand

Answer

Derived forecast demand

Answer

Stochastic demand

Question 6

A demand plan that is consistently higher than actual sales is said to have:

Accepted Answer

Positive forecast bias

Answer

Negative forecast bias

Answer

High forecast accuracy

Answer

Low mean absolute deviation