Supply Chain Planning and Forecasting: Master the Art of Demand and Supply

Question 1

Which demand forecasting method relies on historical data, assuming future trends will resemble past patterns?

Accepted Answer

Time series analysis

Answer

Delphi method

Answer

Market research

Answer

Expert judgment

Question 2

In supply chain management, what is the primary objective of supply planning?

Accepted Answer

Ensuring availability of required raw materials and components for production

Answer

Predicting future demand

Question 3

Which production planning technique involves breaking down large orders into smaller batches produced sequentially?

Accepted Answer

Lot sizing

Answer

Material requirements planning (MRP)

Answer

Master scheduling

Question 4

What is the primary goal of collaborating with supply chain partners?

Accepted Answer

Optimizing the flow of goods and services

Answer

Increasing market share

Answer

Enhancing customer experience

Answer

Reducing expenses

Question 5

When forecasting demand for a new product, which type of forecast is most suitable?

Accepted Answer

Exploratory forecast

Answer

Medium-term forecast

Answer

Long-term forecast

Answer

Short-term forecast

Question 6

What is the primary focus of aggregate planning in supply chain management?

Accepted Answer

Determining overall production and inventory levels during a specified time period

Answer

Planning specific production schedules for products

Answer

Forecasting demand for individual products

Question 7

What is the underlying objective of continuous improvement in supply chain management?

Accepted Answer

Eliminating waste and inefficiencies within the supply chain

Answer

Maximizing profits

Answer

Improving customer satisfaction

Question 8

Which demand forecasting technique relies on historical data patterns to predict future demand?

Accepted Answer

Time series analysis

Answer

Delphi method

Answer

Customer surveys

Answer

Market research

Question 9

What is the primary goal of supply planning in a supply chain?

Accepted Answer

To ensure availability of the right quantity of materials and resources at the right time and place.

Answer

To reduce lead times

Answer

To minimize production costs

Question 10

What is the key distinction between dependent and independent demand?

Accepted Answer

Dependent demand is derived from another demand, while independent demand is not.

Answer

Dependent demand is more predictable than independent demand.

Answer

Independent demand is typically higher than dependent demand.

Question 11

Which statistical measure is used to evaluate the accuracy of a demand forecast by quantifying the average absolute difference between actual and forecast values?

Accepted Answer

Mean absolute deviation

Answer

Correlation coefficient

Answer

Regression analysis

Answer

Standard deviation

Question 12

What is the primary purpose of holding safety stock in a supply chain?

Accepted Answer

To provide a buffer against unexpected variations in demand or supply.

Answer

To reduce inventory carrying costs

Answer

To increase customer satisfaction

Question 13

How does collaboration and coordination contribute to effective supply chain planning and forecasting?

Accepted Answer

By aligning plans and activities among supply chain partners, reducing inefficiencies and improving overall performance.

Answer

By increasing competition among supply chain partners

Answer

By eliminating the need for forecasting

Question 14

Which of these is NOT a benefit of effective supply chain planning?

Accepted Answer

Increased customer dissatisfaction

Answer

Improved delivery lead times

Answer

Reduced inventory costs

Answer

Enhanced operational efficiency

Question 15

What is the main advantage of a company using a collaborative planning, forecasting, and replenishment (CPFR) system with its suppliers?

Accepted Answer

Improved information sharing and collaboration

Answer

Elimination of all inventory

Answer

Reduced transportation costs

Answer

Increased production capacity

Question 16

A company has high demand for a product, but is experiencing delays in getting raw materials. Which supply planning strategy is most appropriate?

Accepted Answer

Increase safety stock levels

Answer

Delay customer orders

Answer

Reduce production capacity

Question 17

What is the main purpose of a Material Requirements Planning (MRP) system?

Accepted Answer

To determine the quantity and timing of material orders

Answer

To optimize transportation routes

Answer

To forecast future demand

Question 18

What is the key difference between a push and a pull production system?

Accepted Answer

Push systems produce based on forecasts, while pull systems produce based on actual demand.

Answer

Push systems are more efficient, while pull systems are more flexible.

Answer

Push systems are used for low-volume production, while pull systems are used for high-volume production.

Question 19

What is the main purpose of a supply chain risk assessment?

Accepted Answer

To identify and evaluate potential disruptions to the supply chain

Answer

To improve customer satisfaction

Answer

To reduce inventory costs

Question 20

A company experiences significant fluctuations in demand. Which forecasting method is best suited for this situation?

Accepted Answer

Exponential smoothing

Answer

Simple moving average

Answer

Naive forecasting

Answer

Trend analysis

Question 21

Identify the initial stage in demand forecasting.

Accepted Answer

Recognizing historical patterns

Answer

Negotiating with suppliers

Answer

Monitoring inventory levels

Answer

Calculating production capabilities

Question 22

Which forecasting method utilizes historical sales data to predict future demand?

Accepted Answer

Time series analysis

Answer

Delphi technique

Answer

Scenario planning

Answer

Simulation

Question 23

What is the primary function of inventory management in supply chain planning?

Accepted Answer

To balance the flow of goods and minimize expenses

Answer

To project future demand

Answer

To manage supplier relationships

Answer

To schedule production

Question 24

Which risk management strategy is most effective in mitigating supply chain planning risks?

Accepted Answer

Developing contingency plans

Answer

Reducing supplier contracts

Answer

Lowering transportation costs

Answer

Increasing inventory levels

Question 25

What is the ultimate goal of supply chain planning and forecasting?

Accepted Answer

To efficiently and profitably satisfy customer demand

Answer

To reduce inventory costs

Answer

To enhance supplier relationships

Answer

To minimize lead times

Question 26

Which forecasting method is best suited for predicting demand for new products with limited historical data?

Accepted Answer

Expert judgment

Answer

Regression analysis

Answer

Time series analysis

Answer

Econometric models

Question 27

What is the primary goal of supply planning?

Accepted Answer

To determine the quantity and timing of production or inventory purchases

Answer

To manage suppliers

Answer

To forecast demand

Question 28

Which factor does NOT influence production planning?

Accepted Answer

Government regulations

Answer

Inventory levels

Answer

Production capacity

Answer

Demand forecast

Question 29

What is the purpose of collaboration in supply chain planning?

Accepted Answer

To enhance coordination and reduce inefficiencies

Answer

To improve customer satisfaction

Answer

To increase market share

Answer

To reduce costs

Question 30

Which advantage is associated with using historical data in forecasting?

Accepted Answer

It enables the identification of patterns and trends

Answer

It eliminates the need for assumptions

Answer

It provides insights into future events

Answer

It is the sole accurate method

Question 31

What is the difference between qualitative and quantitative forecasting methods?

Accepted Answer

Qualitative methods rely on opinions and judgments, while quantitative methods use statistical data

Answer

Qualitative methods are more accurate than quantitative methods

Answer

Quantitative methods require more data than qualitative methods

Question 32

Which of the following is a key performance indicator (KPI) for supply chain planning?

Accepted Answer

Inventory turnover rate

Answer

Market share

Answer

Customer satisfaction

Answer

Employee turnover rate

Question 33

What is the bullwhip effect?

Accepted Answer

The tendency for demand variability to increase as it moves up the supply chain

Answer

The tendency for supply variability to decrease as it moves up the supply chain

Answer

The tendency for prices to fluctuate randomly

Question 34

Which of the following is a technique used to reduce uncertainty in supply chain planning?

Accepted Answer

Scenario planning

Answer

Price fixing

Answer

Outsourcing

Question 35

What is the primary role of a supply chain manager?

Accepted Answer

To plan, organize, and control the flow of goods and services

Answer

To manage finances

Answer

To supervise employees