CPIM - Certified in Planning and Inventory Management Demand Management Questions and Answers

Question 1

A company that manufactures seasonal decorations is developing its demand management strategy. Which of the following activities is a primary component of demand management?

Accepted Answer

Recognizing and managing all demands for products and services.

Answer

Issuing purchase orders to raw material suppliers based on the production schedule.

Answer

Conducting daily stand-up meetings to review production line output.

Answer

Performing final quality control checks on finished goods before shipment.

Question 2

A key input to the master production schedule (MPS) is the demand forecast. The process of developing this forecast and managing customer orders is a core part of which function?

Accepted Answer

Demand Management

Answer

Capacity requirements planning (CRP)

Answer

Materials requirements planning (MRP)

Answer

Supplier relationship management (SRM)

Question 3

A company is experiencing erratic demand for one of its key products. To better align supply with this unpredictable demand, they decide to implement a strategy where they collaborate closely with their major retail partners to share sales data, develop joint forecasts, and coordinate replenishment activities. This practice is best described as:

Accepted Answer

Collaborative Planning, Forecasting, and Replenishment (CPFR)

Answer

Vendor-Managed Inventory (VMI)

Answer

Just-in-Time (JIT) II

Answer

Sales and Operations Planning (S&OP)

Question 4

Which of the following is considered a 'demand shaping' activity?

Accepted Answer

Offering a pre-season discount on a new line of winter coats.

Answer

Increasing safety stock levels to buffer against forecast error.

Answer

Expediting a shipment of raw materials to prevent a production delay.

Answer

Implementing a new warehouse management system to improve picking efficiency.

Question 5

The demand management process serves as a critical link between the strategic/business plan and which of the following detailed planning processes?

Accepted Answer

Master Scheduling

Answer

Shop floor control

Answer

Purchasing and receiving

Answer

Final assembly scheduling

Question 6

A planner is reviewing historical sales data for a product that shows a significant, predictable increase in sales every November and December. To create an accurate forecast, which of the following demand components must be addressed?

Accepted Answer

Seasonality

Answer

Trend

Answer

Random variation

Answer

Cyclical elements

A company that manufactures seasonal decorations is developing its demand management strategy.Which of the following activities is a primary component of demand management?

A company that manufactures seasonal decorations is developing its demand management strategy.
Which of the following activities is a primary component of demand management?