CDPP Forecasting Techniques

Question 1

What is the main goal of demand forecasting in supply chain management?

Accepted Answer

To predict customer demand and optimize inventory management

Answer

To estimate the total sales revenue for a company

Answer

To track customer satisfaction

Answer

To estimate future profits based on historical data

Question 2

Which of the following is a qualitative forecasting method?

Accepted Answer

Delphi method

Answer

Moving average

Answer

Exponential smoothing

Answer

Linear regression

Question 3

What does the moving average forecasting method help to smooth?

Accepted Answer

Short-term fluctuations in data

Answer

Seasonal demand fluctuations

Answer

Long-term demand trends

Answer

Business growth patterns

Question 4

What is exponential smoothing in demand forecasting?

Accepted Answer

Answer

A method that forecasts future demand based on weighted averages of historical data

Answer

A method that assumes future demand will mirror past patterns

Answer

A method that uses time-series decomposition for forecasting

Answer

A method that only considers the most recent demand data

Question 5

What is the primary advantage of using a regression model in demand forecasting?

Accepted Answer

It predicts demand based on variables that influence demand

Answer

It requires no historical data for prediction

Answer

It forecasts future demand based solely on historical trends

Answer

It smooths out any seasonal fluctuations in the data

Question 6

Why is seasonality an important factor in demand forecasting?

Accepted Answer

It helps predict the time periods with highest demand

Answer

It helps predict the economic downturns that may affect sales

Answer

It indicates the best time to introduce new products

Answer

It identifies the best strategies for reducing operational costs