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

Simple moving average

Answer

Exponential smoothing with trend

Answer

Naive forecasting

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

Replacing long-term strategic forecasts entirely

Answer

Eliminating the need for safety stock

Answer

Reducing the number of SKUs in a product portfolio

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

Generating joint sales forecasts

Answer

Resolving forecast exceptions

Answer

Placing replenishment orders

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

Random variation

Answer

Negative bias

Answer

Seasonal error

Question 5

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

Accepted Answer

Demand shaping

Answer

Chase strategy

Answer

Level production

Answer

Demand filtering

Question 6

What does the mean absolute percentage error (MAPE) measure in demand forecasting?

Accepted Answer

The average percentage deviation of forecasts from actual demand

Answer

The total cumulative error over all forecast periods

Answer

The standard deviation of forecast errors

Answer

The maximum single-period forecast miss