CSCP Demand Management 2

Question 1

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

Accepted Answer

Offering promotional discounts to shift demand from peak to off-peak periods

Answer

Demand shaping uses pricing, promotions, and incentives to influence when and how much customers buy, smoothing demand across time periods.

Question 2

A tracking signal in demand forecasting is used to:

Accepted Answer

Detect whether a forecasting model is consistently biased

Answer

The tracking signal monitors cumulative forecast errors to identify when a forecast model is systematically over- or under-predicting demand.

Question 3

What is the primary benefit of segmenting customers by demand pattern when developing forecasting strategies?

Accepted Answer

It allows tailored forecasting approaches matched to the characteristics of each segment

Answer

Different customer segments exhibit different demand behaviors, so segmentation enables more accurate and appropriate forecasting methods for each group.

Question 4

In demand management, 'Available-to-Promise' (ATP) refers to:

Accepted Answer

The quantity of inventory available for immediate shipment based on current stock minus existing commitments

Answer

ATP is the uncommitted portion of inventory and planned production that can be promised to new customer orders without affecting existing commitments.

Question 5

Which forecasting time horizon is most appropriate for Sales and Operations Planning (S&OP)?

Accepted Answer

Monthly to 18 months

Answer

S&OP typically operates on a monthly planning cycle with a rolling horizon of 12-18 months to align tactical supply and demand.

CSCP - Certified Supply Chain Professional Practice Test

CSCP - Certified Supply Chain Professional Practice Test

CSCP Demand Management 2