CPIM Demand Management & Forecasting 5

Question 1

Which demand planning concept involves breaking down an aggregate forecast into individual SKU or location-level forecasts?

Accepted Answer

Demand disaggregation

Answer

Demand disaggregation splits a higher-level aggregate forecast down to granular levels such as SKU, region, or customer.

Question 2

A company's product has a seasonal index of 1.3 for Q4. If the annual average monthly demand is 1,000 units, what is the expected Q4 monthly demand?

Accepted Answer

1,300 units

Answer

A seasonal index of 1.3 means Q4 demand is 30% above average, so 1,000 × 1.3 = 1,300 units.

Question 3

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

Accepted Answer

MAPE

Answer

MAPE (Mean Absolute Percentage Error) normalizes error as a percentage of actual demand, enabling apples-to-apples comparison across different product volumes.

Question 4

Available-to-Promise (ATP) is calculated as:

Accepted Answer

On-hand inventory plus scheduled receipts minus committed orders

Answer

ATP represents supply that is available to commit to new customer orders: on-hand inventory plus scheduled receipts, minus orders already committed.

Question 5

In demand management, 'planned orders' differ from 'firm planned orders' in that firm planned orders:

Accepted Answer

Are manually frozen by planners to prevent automatic MRP changes

Answer

Firm planned orders are manually frozen by planners so that MRP does not automatically reschedule or change them during regenerative planning runs.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Demand Management & Forecasting 5