CSCP Demand Management 3

Question 1

Which of the following is the correct formula for calculating forecast bias?

Accepted Answer

Sum of (Actual - Forecast) / Number of periods

Answer

Sum of |Actual - Forecast| / Number of periods

Answer

Square root of the sum of squared errors

Answer

Max(Actual - Forecast) across all periods

Question 2

Causal forecasting methods, such as regression analysis, differ from time-series methods because they:

Accepted Answer

Identify relationships between demand and external variables like price or economic indicators

Answer

Use only historical demand data to project future demand

Answer

Are simpler and require less data to implement

Answer

Focus exclusively on seasonal adjustment

Question 3

In demand management, what is a 'consensus forecast'?

Accepted Answer

A single agreed-upon forecast produced through cross-functional collaboration and review

Answer

A forecast generated solely by the statistical algorithm

Answer

A forecast that averages all individual department submissions

Answer

A forecast validated against government economic statistics

Question 4

Which KPI measures the percentage of customer orders fulfilled completely, on time, and without damage?

Accepted Answer

Perfect Order Rate

Answer

Fill rate

Answer

Forecast accuracy

Answer

Customer Service Level

Question 5

Which demand management approach places replenishment decisions at the retailer level while the supplier retains visibility of inventory?

Accepted Answer

Vendor Managed Inventory (VMI)

Answer

Collaborative Planning, Forecasting, and Replenishment (CPFR)

Answer

Consignment inventory

Answer

Drop shipping

Question 6

What does the term 'demand latency' refer to in supply chain demand management?

Accepted Answer

The time delay between when demand occurs and when it is visible to supply chain planners

Answer

The seasonal lag in demand for weather-dependent products

Answer

The delay between placing an order and receiving it

Answer

The time required to generate a statistical forecast

Question 7

A company notices that its forecast error is consistently high for new product launches. Which approach is most appropriate for improving forecast accuracy in this situation?

Accepted Answer

Use analogous product data and structured expert judgment since historical data is limited

Answer

Increase the exponential smoothing alpha to give more weight to recent history

Answer

Switch to a naive forecast using the most recent period's actual demand

Answer

Extend the forecasting horizon to allow more data accumulation before launch