CPIM Demand Management and Forecasting 2

Question 1

What is 'collaborative planning, forecasting, and replenishment' (CPFR)?

Accepted Answer

A supply chain practice where trading partners jointly develop forecasts and replenishment plans

Answer

CPFR is a collaborative process in which retailers and suppliers share data and jointly create forecasts and replenishment plans to improve supply chain performance.

Question 2

Which component of demand is caused by regular, repeating patterns tied to a calendar cycle?

Accepted Answer

Seasonality

Answer

Seasonality describes demand patterns that repeat predictably within a year, such as holiday spikes or summer peaks.

Question 3

What is the 'bullwhip effect' in supply chain demand management?

Accepted Answer

The amplification of demand variability as orders move upstream in the supply chain

Answer

The bullwhip effect describes how small demand variations at the retail level become increasingly amplified as they travel upstream to manufacturers and suppliers.

Question 4

What is 'demand sensing' in modern supply chain management?

Accepted Answer

Using short-term, high-frequency data (POS, shipments) to detect real-time demand signals

Answer

Demand sensing uses near-real-time data such as point-of-sale information to detect and respond to actual demand faster than traditional forecasting.

Question 5

Which demand management technique smooths out demand peaks by influencing customer timing?

Accepted Answer

Demand shaping (e.g., promotions, pricing incentives)

Answer

Demand shaping uses pricing, promotions, or incentives to shift customer demand from peak periods to slower periods, leveling the overall demand curve.

CPIM - Certified in Production and Inventory Management Practice Test

CPIM - Certified in Production and Inventory Management Practice Test

CPIM Demand Management and Forecasting 2