CPIM Demand Management 5

Question 1

Which of the following best describes the role of a 'time fence' in the master scheduling process?

Accepted Answer

A boundary that controls how and when changes can be made to the MPS

Answer

Time fences define zones in the planning horizon where schedule changes are restricted or require authorization to maintain stability in production and purchasing.

Question 2

When using weighted moving averages, assigning higher weights to more recent periods results in:

Accepted Answer

A more responsive forecast that reacts quickly to recent demand changes

Answer

Higher weights on recent data make the forecast more responsive to current demand trends at the expense of potentially overreacting to random fluctuations.

Question 3

A company sells products to both retail consumers and to industrial buyers. Managing these two demand streams separately is important because:

Accepted Answer

Each channel may have different order patterns, lead time expectations, and pricing requirements

Answer

Different demand channels have distinct characteristics — order patterns, volumes, lead time needs, and pricing — and mixing them can obscure planning signals.

Question 4

Which of the following is the BEST indicator that a demand management process is performing well?

Accepted Answer

High forecast accuracy combined with high customer service levels

Answer

Effective demand management produces accurate forecasts that enable the company to meet customer service targets without excessive inventory.

Question 5

A manufacturer experiences large swings in orders from its distributor, even though end-consumer sales are relatively stable. To reduce this effect, the manufacturer should:

Accepted Answer

Share point-of-sale data with the distributor and implement vendor-managed inventory

Answer

Sharing POS data and using VMI aligns replenishment to actual consumption rather than ordering behavior, directly attacking the root cause of the bullwhip effect.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Demand Management 5