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 the correct formula for calculating forecast bias?
Answer: Sum of (Actual - Forecast) / Number of periods
Forecast bias is calculated as the sum of (Actual minus Forecast) divided by the number of periods, indicating systematic over- or under-forecasting.
Causal forecasting methods, such as regression analysis, differ from time-series methods because they:
Answer: Identify relationships between demand and external variables like price or economic indicators
Causal methods model demand as a function of external driving variables, enabling forecasters to quantify the impact of factors like price changes or advertising.
In demand management, what is a 'consensus forecast'?
Answer: A single agreed-upon forecast produced through cross-functional collaboration and review
A consensus forecast results from a structured process where sales, marketing, finance, and supply chain teams align on a single number through collaborative review.
Which KPI measures the percentage of customer orders fulfilled completely, on time, and without damage?
Answer: Perfect Order Rate
The Perfect Order Rate captures complete, on-time, damage-free, and correctly invoiced orders as a single end-to-end measure of order fulfillment quality.
Which demand management approach places replenishment decisions at the retailer level while the supplier retains visibility of inventory?
Answer: Vendor Managed Inventory (VMI)
In VMI, the supplier monitors the retailer's inventory levels and is responsible for making replenishment decisions to maintain agreed stock levels.
What does the term 'demand latency' refer to in supply chain demand management?
Answer: The time delay between when demand occurs and when it is visible to supply chain planners
Demand latency is the time lag between actual consumption at the point of sale and the point at which that demand signal reaches upstream planners, contributing to the bullwhip effect.
A company notices that its forecast error is consistently high for new product launches. Which approach is most appropriate for improving forecast accuracy in this situation?
Answer: Use analogous product data and structured expert judgment since historical data is limited
For new products with no sales history, analogous forecasting uses data from similar existing products combined with market research and expert input.