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

Question 1

A company is introducing a revolutionary new technology product for which no historical sales data exists.
To develop a demand forecast, the marketing department gathers a panel of industry analysts, futurists, and technology experts.
The process involves multiple rounds of anonymous questionnaires and feedback to arrive at a group consensus.
Which forecasting method is being used?

Accepted Answer

Delphi method

Answer

Time series analysis

Answer

Causal modeling

Answer

Exponential smoothing

Question 2

A manufacturer of winter coats notices that demand for its products increases significantly in the autumn and peaks in early winter, while demand is very low during spring and summer. This predictable fluctuation that occurs within a one-year period is best described as which type of demand pattern?

Accepted Answer

Seasonal

Answer

Trend

Answer

Cyclical

Answer

Random variation

Question 3

A retailer and a manufacturer are working to reduce the bullwhip effect in their shared supply chain. They decide to jointly develop a sales forecast, share inventory and point-of-sale data, and coordinate replenishment activities. This practice is best known as:

Accepted Answer

Collaborative Planning, Forecasting, and Replenishment (CPFR)

Answer

Vendor-Managed Inventory (VMI)

Answer

Materials Requirements Planning (MRP)

Answer

Demand shaping

Question 4

A company wants to actively influence customer demand to better match its available supply. During a period of low inventory for a premium product, the company offers a price discount on a similar, more readily available alternative. This is an example of which demand management strategy?

Accepted Answer

Demand shaping

Answer

Time series forecasting

Answer

Inventory optimization

Answer

Order fulfillment

Question 5

A supply chain analyst is evaluating the accuracy of a forecasting model. The actual demand for a product was 200 units, and the forecast was 250 units. What is the Mean Absolute Percent Error (MAPE) for this single data point?

Accepted Answer

25%

Answer

20%

Answer

50%

Answer

125%

Question 6

Which of the following is a primary cause of the bullwhip effect in a supply chain?

Accepted Answer

Lack of communication and long lead times

Answer

Real-time sharing of point-of-sale data

Answer

Stable pricing and infrequent promotions

Answer

Small, frequent order batches