CPF Sample Exam 1 Question Title * 1. All statements are correct except: Shipments drive demand Demand drives shipments The marketplace is dynamic Link all planning activities to one number forecast Question Title * 2. Which of the following isn't a forecasting best practice? Each department prepares and uses its own forecasts Consensus meetings are held to review and revise forecasts All the functions work together Customers provide POS (point of sales) data on a regular basis Question Title * 3. The annual budget is not a substitute for the demand forecast because: It represents financial objectives, and not demand forecast by month or quarter It is fixed at the beginning of the budget cycle It does not show demand changes All of the above Question Title * 4. What should be included in the design forecasting process? The stakeholders who will participate in the process Which forecasting approach to use (top down vs. bottom up) Who forecasters will report to All of the above Question Title * 5. When multiple departments are included in the forecasting process: Forecast overrides should be tracked to determine forecast accuracy improvement Each department should be allowed to override statistical forecasts for its own use Each user should be allowed to override statistical forecasts for their own use The forecaster should be allowed to override their own forecasts Question Title * 6. The S&OP meeting is generally used to: Deal exclusively with the annual budget Deal exclusively with production planning Deal exclusively with financial planning Identify and close the gaps between supply and demand Question Title * 7. In the Collaborative, Planning, Forecasting and Replenishment (CPFR) program, when a vendor has a longer lead time, it is likely to: Make a more firm commitment for on-time delivery Make a looser commitment for on-time delivery Stop selling that product Ask the customer to buy from somewhere else Question Title * 8. An S&OP process will be more effective if: (select all that apply) S&OP and corporate strategy operate independently The S&OP team and senior management aim for a one number forecast The S&OP team meets regularly and periodically The process focuses only on difficult to forecast products Question Title * 9. Effective S&OP will: (select all that apply) Result in higher order fill rates Result in higher expediting costs Increase inventory Improve forecast accuracy Question Title * 10. Implementing S&OP requires: (select all that apply) Collaboration between departments Forecasters to use the latest software Regular S&OP meeting with key stakeholders Alignment of financial plans with operational plans Question Title * 11. Forecasts can be developed from the 'top-down' or 'bottom-up'. In the 'bottom-up' approach: We first forecast the group total, and then distribute it among individual items in the group We use a 3-month moving average to forecast individual items in the group We use a classical decomposition model to forecast the group total We first prepare a forecast of each item, and then sum the item forecasts to obtain the total group forecast Question Title * 12. During times of market instability, the best ordering strategy is to: Order more, less frequently Order less, more frequently Order the quantity forecasted for the next six months None of the above Question Title * 13. All statements are true except: Forecasts are required for demand planning Forecasts are required for production planning For better forecasts, a collaborative forecasting process is needed For better forecasts and planning, each function must prepare and use its own forecasts Question Title * 14. A consistent upward bias in the forecast can result from: An optimistic forecaster Pressure from senior management to match the forecast to sales targets Marketing's promotional budget being tied to the forecast All of the above Question Title * 15. Which of the following is not important in developing an unconstrained demand forecast? Forecast time horizon Forecast error tolerance Data reliability Production capacity Question Title * 16. From a production perspective, over-forecasting, with no capacity constraint, generally: Increases cost per unit Decreases cost per unit Does not affect the cost per unit None of the above Question Title * 17. The best way to approach demand forecasting is to: First forecast inventory and then demand First forecast procurement needs and then demand First forecast shipments and then demand First settle on assumptions and then prepare demand forecasts Question Title * 18. During the declining phase of a product lifecycle, forecasters tend to: Under-forecast Over-forecast Neither over- nor under-forecast Ignore the forecast of those products Question Title * 19. The bullwhip effect is most likely to appear: When demand planners use a multiple forecast philosophy When demand planners use a one number forecast philosophy When there is a strong collaboration both within and outside the enterprise When there is consensus process in place Question Title * 20. Forecasts are influenced by: The pattern of demand Seasonal and trend factors Informed judgment All of the above Question Title * 21. When forecasting demand, the best data source is: Shipment data Constrained demand data Unconstrained demand data All of the above Question Title * 22. A good demand plan considers: Business seasonality Market and business trends Unconstrained demand All of above Question Title * 23. Strategic forecasts are used to prepare: Production plans Capacity plans Procurement plans All of the above Question Title * 24. An effective forecasting process is: Quantitative and analytical Collaborative and participative Judgmental and interactive All of the above Question Title * 25. The demand forecasting and demand planning processes should assume that: The needs of various company departments are essentially the same The same attention and effort should be given to each product All products are not equally forecastable, nor equally important None of the above Question Title * 26. Personal Information Name Company Email Address If you would like to continue on to Sample Exam 2, please click here. 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