CSCP Demand Management and Forecasting Questions and Answers

Question 1

A supply chain manager is analyzing demand for a new consumer electronics product.
The data shows a consistent upward movement in sales over the past eight quarters, although there are also predictable peaks in the fourth quarter and dips in the first quarter of each year.
Which combination of demand patterns best describes this situation?

Accepted Answer

Trend and seasonal

Answer

Seasonal and cyclical

Answer

Random and trend

Answer

Cyclical and random

Question 2

A company is preparing a long-range forecast for a completely new, innovative technology for which no historical sales data exists. The leadership wants to gather and synthesize opinions from a diverse group of internal and external subject matter experts to arrive at a consensus forecast. Which of the following forecasting techniques would be most appropriate?

Accepted Answer

Delphi method

Answer

Exponential smoothing

Answer

Time series analysis

Answer

Linear regression

Question 3

In the Collaborative Planning, Forecasting, and Replenishment (CPFR) model, which of the following activities occurs during the initial 'Strategy & Planning' phase?

Accepted Answer

Creating a joint business plan and defining collaboration rules.

Answer

Generating the final order forecast.

Answer

Identifying exceptions between sales forecast and order forecast.

Answer

Executing the replenishment of orders to the retailer.

Question 4

A company wants to select the best short-term forecasting model for its large portfolio of products. The demand patterns vary significantly across different items. The chosen forecasting methodology involves applying several simple forecasting rules to the historical data of each product and selecting the rule that would have performed with the least error for the next period. This methodology is known as:

Accepted Answer

Focus forecasting

Answer

Adaptive smoothing

Answer

Pyramid forecasting

Answer

Sales and operations planning (S&OP)

Question 5

A manager is evaluating two different forecasting methods. Method A has a Mean Absolute Deviation (MAD) of 100 units. Method B has a Mean Absolute Percent Error (MAPE) of 10%. To properly compare the accuracy of these two methods, what additional information is most critical?

Accepted Answer

The average demand of the product.

Answer

The tracking signal for each method.

Answer

The lead time for the product.

Answer

The cost of the product.

Question 6

Which of the following is an example of a demand shaping activity?

Accepted Answer

Offering a promotional discount on last season's inventory to accelerate sales.

Answer

Increasing safety stock levels to buffer against forecast inaccuracy.

Answer

Implementing a new warehouse management system to improve efficiency.

Answer

Expediting a shipment from a supplier to avoid a stockout.