Supply Chain Management Demand Planning 3

Question 1

Collaborative Planning, Forecasting, and Replenishment (CPFR) primarily improves demand planning by:

Accepted Answer

Sharing data and forecasts between trading partners

Answer

CPFR reduces the bullwhip effect and improves accuracy by enabling retailers and suppliers to jointly develop and share forecasts.

Question 2

What does a Demand Signal Repository (DSR) primarily store?

Accepted Answer

Point-of-sale and consumer demand data from multiple sources

Answer

A DSR aggregates granular downstream demand signals such as POS data, enabling more accurate and timely demand sensing.

Question 3

Which of the following best describes 'demand shaping' in supply chain management?

Accepted Answer

Using promotions or pricing to influence customer demand toward preferred products

Answer

Demand shaping uses commercial levers like promotions, pricing, and product substitution to actively steer demand toward supply-aligned outcomes.

Question 4

In a causal forecasting model, an example of an independent variable used to predict product demand would be:

Accepted Answer

Regional GDP growth rate

Answer

Causal models use external drivers like economic indicators, weather, or demographic data as independent variables to explain and predict demand.

Question 5

The 'forecast horizon' in demand planning refers to:

Accepted Answer

How far into the future the forecast extends

Answer

Forecast horizon defines the time period covered by the forecast, ranging from short-term operational (days/weeks) to long-term strategic (years).

Supply Chain Management Practice Test