OSCM Exam 3 Questions with Correct Answers Latest Update 2025/2026
Demand Management - Answers Recognizing, influencing, and prioritizing demand so it aligns
with company capabilities.
Demand Sensing - Answers Detecting changes in customer demand in real time.
Demand Shaping - Answers Influencing demand through promotions, pricing, or communication.
Demand Shifting - Answers Moving demand to different time periods to balance load.
CPFR - Answers Collaborative planning between supply chain partners to create shared
forecasts.
Forecast - Answers A prediction of future demand based on data and judgment.
Forecast Error - Answers The difference between actual demand and forecasted demand.
Qualitative Forecasting - Answers Forecasting based on judgment or expert opinion.
Quantitative Forecasting - Answers Forecasting using historical numerical data.
Extrinsic Forecasting - Answers Uses external indicators correlated with demand.
Intrinsic Forecasting - Answers Uses past internal demand data to form forecasts.
Moving Average - Answers Forecast method that averages demand from previous periods.
Exponential Smoothing - Answers Forecasting method using weighted averages where recent
data is weighted more.
Seasonal Index - Answers A multiplier that adjusts forecasts for recurring seasonal patterns.
Forecast Bias - Answers Systematic overestimation or underestimation of demand.
MAD - Answers Mean Absolute Deviation; average of absolute forecast errors.
Tracking Signal - Answers Cumulative forecast error divided by MAD; used to detect bias.
SKU - Answers A unique identifier for each item kept in inventory.
Lot-for-Lot - Answers Ordering exactly what is required each period with no leftover.
Fixed Order Quantity - Answers A constant order size, often based on EOQ.
Period Order Quantity - Answers Orders enough inventory to cover a set number of time periods.
EOQ - Answers Economic Order Quantity; the order size that minimizes carrying and ordering
costs.
Demand Management - Answers Recognizing, influencing, and prioritizing demand so it aligns
with company capabilities.
Demand Sensing - Answers Detecting changes in customer demand in real time.
Demand Shaping - Answers Influencing demand through promotions, pricing, or communication.
Demand Shifting - Answers Moving demand to different time periods to balance load.
CPFR - Answers Collaborative planning between supply chain partners to create shared
forecasts.
Forecast - Answers A prediction of future demand based on data and judgment.
Forecast Error - Answers The difference between actual demand and forecasted demand.
Qualitative Forecasting - Answers Forecasting based on judgment or expert opinion.
Quantitative Forecasting - Answers Forecasting using historical numerical data.
Extrinsic Forecasting - Answers Uses external indicators correlated with demand.
Intrinsic Forecasting - Answers Uses past internal demand data to form forecasts.
Moving Average - Answers Forecast method that averages demand from previous periods.
Exponential Smoothing - Answers Forecasting method using weighted averages where recent
data is weighted more.
Seasonal Index - Answers A multiplier that adjusts forecasts for recurring seasonal patterns.
Forecast Bias - Answers Systematic overestimation or underestimation of demand.
MAD - Answers Mean Absolute Deviation; average of absolute forecast errors.
Tracking Signal - Answers Cumulative forecast error divided by MAD; used to detect bias.
SKU - Answers A unique identifier for each item kept in inventory.
Lot-for-Lot - Answers Ordering exactly what is required each period with no leftover.
Fixed Order Quantity - Answers A constant order size, often based on EOQ.
Period Order Quantity - Answers Orders enough inventory to cover a set number of time periods.
EOQ - Answers Economic Order Quantity; the order size that minimizes carrying and ordering
costs.
