CPIM Demand Management & Forecasting 3

Question 1

Which type of demand is directly driven by the demand for a finished product and is derived from the bill of materials?

Accepted Answer

Dependent demand

Answer

Dependent demand is calculated from the parent item's demand using the BOM relationship, such as components needed to build a finished good.

Question 2

A forecast with alpha = 0.9 in exponential smoothing will:

Accepted Answer

React very quickly to recent demand changes

Answer

A high alpha value (close to 1) places most weight on the most recent observation, making the forecast highly responsive to demand changes.

Question 3

Which demand management technique involves offering discounts or promotions to shift demand from peak to off-peak periods?

Accepted Answer

Demand shaping

Answer

Demand shaping uses pricing, promotions, or incentives to actively influence the timing and volume of customer demand.

Question 4

The forecast horizon should generally align with which planning parameter?

Accepted Answer

Cumulative lead time

Answer

The forecast horizon must cover at least the cumulative lead time so that procurement and production actions can be taken before demand occurs.

Question 5

Which statistical method is best suited for forecasting a product with a strong linear upward trend but no seasonality?

Accepted Answer

Trend-adjusted exponential smoothing

Answer

Trend-adjusted exponential smoothing (Holt's method) accounts for both level and trend components, making it appropriate for trended non-seasonal data.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Demand Management & Forecasting 3