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

Forecast bias is calculated as the sum of (Actual minus Forecast) divided by the number of periods, indicating systematic over- or under-forecasting.

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

Causal methods model demand as a function of external driving variables, enabling forecasters to quantify the impact of factors like price changes or advertising.

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 consensus forecast results from a structured process where sales, marketing, finance, and supply chain teams align on a single number through collaborative review.

Question 4

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

Accepted Answer

Perfect Order Rate

Answer

The Perfect Order Rate captures complete, on-time, damage-free, and correctly invoiced orders as a single end-to-end measure of order fulfillment quality.

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

In VMI, the supplier monitors the retailer's inventory levels and is responsible for making replenishment decisions to maintain agreed stock levels.

CSCP - Certified Supply Chain Professional Practice Test

CSCP - Certified Supply Chain Professional Practice Test

CSCP Demand Management 3