CPIM Demand Management 2

Question 1

A company notices its forecast error consistently underestimates actual demand. This systematic bias is best corrected by:

Accepted Answer

Applying a positive bias adjustment to future forecasts

Answer

Increasing the smoothing constant in exponential smoothing

Answer

Switching to a qualitative forecasting method

Answer

Reducing the forecast horizon

Question 2

Which demand pattern is characterized by a regular, repeating fluctuation tied to the calendar?

Accepted Answer

Seasonality

Answer

Trend

Answer

Cyclicality

Answer

Random variation

Question 3

In collaborative planning, forecasting, and replenishment (CPFR), trading partners share:

Accepted Answer

Sales forecasts, promotional plans, and order information

Answer

Only historical shipment data

Answer

Confidential supplier cost structures

Answer

Internal production schedules exclusively

Question 4

A demand filter is used in forecasting systems primarily to:

Accepted Answer

Flag demand data points that fall outside expected ranges for review

Answer

Automatically adjust safety stock levels

Answer

Calculate the optimal reorder point

Answer

Determine customer priority rankings

Question 5

Which measure expresses forecast accuracy as a percentage of actual demand, making it useful for comparing accuracy across products with different volumes?

Accepted Answer

Mean Absolute Percent Error (MAPE)

Answer

Mean Absolute Deviation (MAD)

Answer

Mean Squared Error (MSE)

Answer

Tracking signal

Question 6

The 'bullwhip effect' in demand management refers to:

Accepted Answer

Amplifying order variability as orders move upstream in the supply chain

Answer

Shrinking order variability as orders move upstream in the supply chain

Answer

A method for smoothing seasonal demand patterns

Answer

A technique for reducing forecast bias

Question 7

When a company uses point-of-sale (POS) data shared by retailers to update its forecasts, this practice is known as:

Accepted Answer

Demand sensing

Answer

Vendor-managed inventory

Answer

Consignment stocking

Answer

Safety stock optimization