CSCP Demand Management

Question 1

Which forecasting method uses a weighted average of past demand observations where more recent data receives higher weights?

Accepted Answer

Exponential smoothing

Answer

Exponential smoothing assigns exponentially decreasing weights to older observations, giving more importance to recent demand data.

Question 2

What is the primary purpose of a Sales and Operations Planning (S&OP) process?

Accepted Answer

To align supply capabilities with demand requirements across functions

Answer

S&OP aligns sales, marketing, finance, and operations by balancing demand plans with supply capabilities at an aggregate level.

Question 3

Mean Absolute Deviation (MAD) is used in demand management primarily to:

Accepted Answer

Measure forecast accuracy and error

Answer

MAD measures the average absolute difference between forecasted and actual demand, indicating how accurate the forecast is.

Question 4

Which of the following best describes the 'bullwhip effect' in demand management?

Accepted Answer

Demand variability amplification as orders move upstream in the supply chain

Answer

The bullwhip effect occurs when small demand fluctuations at the customer level are amplified into larger swings in orders placed upstream.

Question 5

In demand management, what is the difference between independent demand and dependent demand?

Accepted Answer

Independent demand is for finished goods; dependent demand is derived from the demand for finished goods

Answer

Independent demand comes directly from customer orders for finished goods, while dependent demand is calculated from the bill of materials based on production requirements.

CSCP - Certified Supply Chain Professional Practice Test

CSCP - Certified Supply Chain Professional Practice Test

CSCP Demand Management