CSCP FREE Certified Supply Chain Professional (CSCP) Demand Management and Forecasting Questions and Answers 2

Question 1

Which forecasting method uses historical data patterns such as trends, seasonality, and cycles to project future demand?

Accepted Answer

Time series analysis

Answer

Qualitative forecasting

Answer

Causal modeling

Answer

Delphi method

Question 2

What is the primary purpose of demand sensing in supply chain management?

Accepted Answer

To detect short-term shifts in demand using real-time data

Answer

To replace long-term strategic forecasts

Answer

To eliminate the need for safety stock

Answer

To forecast demand for new product launches

Question 3

A company notices that forecast accuracy decreases significantly for items with intermittent demand patterns. Which technique is most appropriate for these items?

Accepted Answer

Croston's method

Answer

Simple moving average

Answer

Exponential smoothing

Answer

Linear regression

Question 4

In the context of demand management, what does 'demand shaping' refer to?

Accepted Answer

Using pricing, promotions, and incentives to influence customer demand

Answer

Adjusting supply to match existing demand

Answer

Forecasting demand more accurately

Answer

Reducing demand variability through safety stock

Question 5

What is the bullwhip effect in demand management?

Accepted Answer

The amplification of demand variability as orders move upstream in the supply chain

Answer

A sudden drop in consumer demand at the retail level

Answer

A technique for smoothing demand fluctuations

Answer

The reduction in lead times through vendor-managed inventory

Question 6

Which metric measures the average absolute deviation of forecasts from actual demand, expressed as a percentage of actual demand?

Accepted Answer

Mean Absolute Percentage Error (MAPE)

Answer

Mean Squared Error (MSE)

Answer

Tracking signal

Answer

Bias