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

Systematic bias (consistent under- or over-forecasting) should be corrected with a bias adjustment rather than changing the smoothing method.

Question 2

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

Accepted Answer

Seasonality

Answer

Seasonality refers to repeating demand patterns tied to specific calendar periods such as months, quarters, or seasons.

Question 3

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

Accepted Answer

Sales forecasts, promotional plans, and order information

Answer

CPFR involves sharing forecasts, promotional plans, and order data between retailers and suppliers to align supply and demand planning.

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

Demand filters identify unusual demand observations (outliers) that may distort the forecast and flag them for analyst review.

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

MAPE expresses the error as a percentage of actual demand, enabling fair comparison across items with vastly different demand volumes.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Demand Management 2