CPIM Demand Management 3

Question 1

In a make-to-order environment, the demand management function primarily focuses on:

Accepted Answer

Managing the customer order backlog and promising delivery dates

Answer

In make-to-order environments there is no finished goods inventory buffer, so managing customer orders and accurate order promising are the core demand management activities.

Question 2

Which forecasting technique is most appropriate when there is no historical data available for a new product?

Accepted Answer

Market research and analogous product analysis

Answer

Without historical data, qualitative methods such as market research or comparison to analogous products are necessary to generate initial demand estimates.

Question 3

The Master Production Schedule (MPS) consumes the forecast by:

Accepted Answer

Using actual customer orders to replace forecast in the near-term planning horizon

Answer

As actual orders are received, they consume (replace) the forecast in the near-term horizon so that the MPS reflects real demand rather than double-counting.

Question 4

A company experiences a sudden one-time spike in demand due to a competitor going out of business. When updating the forecast, the planner should:

Accepted Answer

Treat the spike as an outlier and exclude or dampen it from forecast calculations

Answer

One-time non-recurring events are outliers that distort the statistical forecast and should be excluded or dampened so they don't inflate future predictions.

Question 5

Which of the following best describes 'dependent demand'?

Accepted Answer

Demand calculated from the requirements for a parent item

Answer

Dependent demand is derived mathematically from the demand for a parent assembly or finished good, such as component parts required per unit of finished product.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Demand Management 3