Demand Management Flashcards
7 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Demand Management flashcards as text
Which of the following is an example of a demand shaping strategy?
Answer: Offering promotional discounts to shift demand from peak to off-peak periods
Demand shaping uses pricing, promotions, and incentives to influence when and how much customers buy, smoothing demand across time periods.
A tracking signal in demand forecasting is used to:
Answer: Detect whether a forecasting model is consistently biased
The tracking signal monitors cumulative forecast errors to identify when a forecast model is systematically over- or under-predicting demand.
What is the primary benefit of segmenting customers by demand pattern when developing forecasting strategies?
Answer: It allows tailored forecasting approaches matched to the characteristics of each segment
Different customer segments exhibit different demand behaviors, so segmentation enables more accurate and appropriate forecasting methods for each group.
In demand management, 'Available-to-Promise' (ATP) refers to:
Answer: The quantity of inventory available for immediate shipment based on current stock minus existing commitments
ATP is the uncommitted portion of inventory and planned production that can be promised to new customer orders without affecting existing commitments.
Which forecasting time horizon is most appropriate for Sales and Operations Planning (S&OP)?
Answer: Monthly to 18 months
S&OP typically operates on a monthly planning cycle with a rolling horizon of 12-18 months to align tactical supply and demand.
Which of the following best describes 'demand disaggregation'?
Answer: Breaking an aggregate forecast down into detailed SKU, location, or time-period forecasts
Demand disaggregation takes a high-level aggregate forecast and distributes it to detailed planning levels such as individual products, locations, or time buckets.
What is the key difference between a 'push' system and a 'pull' system in demand-driven supply chain management?
Answer: Push systems use forecasts to drive production; pull systems replenish based on actual demand signals
In a push system, production is triggered by forecasts; in a pull system, replenishment is triggered by actual customer demand, reducing overproduction risk.