CPL Inventory Control & Demand Planning 2

Question 1

Which demand forecasting method assigns greater weight to more recent data points?

Accepted Answer

Exponential smoothing

Answer

Exponential smoothing applies a smoothing factor (alpha) that gives progressively less weight to older observations.

Question 2

A company's safety stock formula accounts for which two primary variables?

Accepted Answer

Demand variability and lead time variability

Answer

Safety stock is calculated based on variability in both demand and lead time to buffer against stockouts.

Question 3

What is the primary purpose of ABC inventory classification?

Accepted Answer

To prioritize management attention based on item value

Answer

ABC analysis segments inventory so that high-value 'A' items receive the most rigorous control and attention.

Question 4

In a periodic review inventory system, what is fixed?

Accepted Answer

The review interval

Answer

In a periodic review (P) system, inventory is checked at fixed time intervals and order quantities vary to bring stock to a target level.

Question 5

Which metric measures the percentage of customer orders fulfilled completely from available stock?

Accepted Answer

Fill rate

Answer

Fill rate measures the proportion of demand satisfied immediately from on-hand inventory without backorders or lost sales.

(CPL) Certified Professional Logistician Practice Test