CSCP CSCP Demand Management and Forecasting Questions and Answers 2

Question 1

A company notices that sales of a seasonal product spike every December. Which forecasting method is MOST appropriate to capture this recurring pattern?

Accepted Answer

Seasonal decomposition method

Answer

Seasonal decomposition separates data into trend, seasonal, and irregular components, making it ideal for products with predictable recurring patterns.

Question 2

What is the primary purpose of demand sensing in modern supply chain management?

Accepted Answer

Detecting short-term shifts in demand using real-time data signals

Answer

Demand sensing uses point-of-sale data, social media trends, and other real-time signals to detect near-term demand changes more quickly than traditional methods.

Question 3

In a collaborative planning, forecasting, and replenishment (CPFR) process, which activity occurs during the strategy and planning phase?

Accepted Answer

Establishing ground rules and defining collaboration scope

Answer

The strategy and planning phase of CPFR focuses on establishing partnership agreements, defining scope, and setting ground rules before any forecasting begins.

Question 4

A forecast consistently predicts demand that is higher than actual sales over multiple periods. Which type of forecast error does this represent?

Accepted Answer

Positive bias

Answer

A persistent overestimate of demand indicates positive forecast bias, where predicted values systematically exceed actual values.

Question 5

Which demand management strategy involves offering price incentives to shift customer orders to periods of lower demand?

Accepted Answer

Demand shaping

Answer

Demand shaping uses pricing, promotions, or product substitution to influence when and what customers buy, smoothing demand across periods.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP CSCP Demand Management and Forecasting Questions and Answers 2