SCHM 2301 LATEST 2026 EVALUATION TEST
QUESTIONS AND ANSWERS MARKED A+
✔✔three core areas of spend analysis - ✔✔visibility
analysis
process.
✔✔Supply Base Optimization - ✔✔• Number of suppliers to use?
• Too few increases shortage and price risks, innovation may be limited
• Too many increases complexity and makes supply management difficult
• Single- or multiple-sourcing
✔✔Capabilities and location are important: - ✔✔• Proximity impacts ease of
communication, transportation costs and community perceptions
• How important is physical nearness of the supplier?
• Consideration of trade barriers and incentives
• Do we need the supplier to have a global presence?
• Global presence may impact access to markets
• How well do the supplier's capabilities and location compare with cost?
✔✔Weighted Point Model - ✔✔establishes performance categories that are weighted by
importance
✔✔Information sharing - ✔✔buyers and suppliers need to share timely data about
demand, supply and delivery
✔✔Electronic Data Interchange (EDI) - ✔✔structured, secure mode of transmitting data
✔✔Supplier Scorecard - ✔✔track and report supplier performance in key areas (KPIs)
✔✔Supplier Certification - ✔✔assessment of supplier's ability to meet buyer's needs
✔✔Supplier Relationship Management (SRM) - ✔✔technology enabled data gathering
about suppliers to manage strategic relationships
✔✔Demand Planning - ✔✔both forecasting and managing customer demand to reach
operational and financial goals
✔✔Demand Forecasting - ✔✔predicting future customer demand
✔✔Demand Management - ✔✔influencing either pattern or consistency of demand
, ✔✔Components of Demand - ✔✔patterns of demand over time
✔✔Autocorrelation - ✔✔relationship of past and current demand
✔✔Forecast error - ✔✔"unexplained" component of demand. Random in nature
✔✔Grassroots - ✔✔input from those close to products or customers
✔✔Executive Judgment - ✔✔input from those with experience
✔✔Historical Analogy - ✔✔assume past demand is a good predictor of future demand
✔✔Marketing Research - ✔✔examine patterns of current customers
✔✔Delphi Method - ✔✔input from panel of experts, usually very expensive
✔✔Time Series Analysis - ✔✔uses historical data arranged in order of occurrence
✔✔Causal Studies - ✔✔cause and effect relationships among variables
✔✔Simulation models - ✔✔create representations of previous events to evaluate future
outcomes
✔✔Moving Average - ✔✔simple average of demand from some number of past periods
• One way to forecast changes in demand while smoothing out variability as a simple
average of past demand outcomes.
• Used when the demand pattern is somewhat stable, without trend or seasonality.
Eliminating "noise" i.e. random variations.
✔✔Weighted Moving Average - ✔✔assigns different weights to each period's demand
based upon its importance
• emphasizes the impact of some observations over the others
• extremely common to add the higher weights to most recent data to capture current
market effects.
✔✔Exponential Smoothing Method - ✔✔puts less weight on further back in time data
more weight given to most recent demand
✔✔Determining Trend Factors - ✔✔The trend component of a time series normally
results from some variable that causes a general rise or decline in values over time.
A linear trend results when demand rises or falls at a constant rate
QUESTIONS AND ANSWERS MARKED A+
✔✔three core areas of spend analysis - ✔✔visibility
analysis
process.
✔✔Supply Base Optimization - ✔✔• Number of suppliers to use?
• Too few increases shortage and price risks, innovation may be limited
• Too many increases complexity and makes supply management difficult
• Single- or multiple-sourcing
✔✔Capabilities and location are important: - ✔✔• Proximity impacts ease of
communication, transportation costs and community perceptions
• How important is physical nearness of the supplier?
• Consideration of trade barriers and incentives
• Do we need the supplier to have a global presence?
• Global presence may impact access to markets
• How well do the supplier's capabilities and location compare with cost?
✔✔Weighted Point Model - ✔✔establishes performance categories that are weighted by
importance
✔✔Information sharing - ✔✔buyers and suppliers need to share timely data about
demand, supply and delivery
✔✔Electronic Data Interchange (EDI) - ✔✔structured, secure mode of transmitting data
✔✔Supplier Scorecard - ✔✔track and report supplier performance in key areas (KPIs)
✔✔Supplier Certification - ✔✔assessment of supplier's ability to meet buyer's needs
✔✔Supplier Relationship Management (SRM) - ✔✔technology enabled data gathering
about suppliers to manage strategic relationships
✔✔Demand Planning - ✔✔both forecasting and managing customer demand to reach
operational and financial goals
✔✔Demand Forecasting - ✔✔predicting future customer demand
✔✔Demand Management - ✔✔influencing either pattern or consistency of demand
, ✔✔Components of Demand - ✔✔patterns of demand over time
✔✔Autocorrelation - ✔✔relationship of past and current demand
✔✔Forecast error - ✔✔"unexplained" component of demand. Random in nature
✔✔Grassroots - ✔✔input from those close to products or customers
✔✔Executive Judgment - ✔✔input from those with experience
✔✔Historical Analogy - ✔✔assume past demand is a good predictor of future demand
✔✔Marketing Research - ✔✔examine patterns of current customers
✔✔Delphi Method - ✔✔input from panel of experts, usually very expensive
✔✔Time Series Analysis - ✔✔uses historical data arranged in order of occurrence
✔✔Causal Studies - ✔✔cause and effect relationships among variables
✔✔Simulation models - ✔✔create representations of previous events to evaluate future
outcomes
✔✔Moving Average - ✔✔simple average of demand from some number of past periods
• One way to forecast changes in demand while smoothing out variability as a simple
average of past demand outcomes.
• Used when the demand pattern is somewhat stable, without trend or seasonality.
Eliminating "noise" i.e. random variations.
✔✔Weighted Moving Average - ✔✔assigns different weights to each period's demand
based upon its importance
• emphasizes the impact of some observations over the others
• extremely common to add the higher weights to most recent data to capture current
market effects.
✔✔Exponential Smoothing Method - ✔✔puts less weight on further back in time data
more weight given to most recent demand
✔✔Determining Trend Factors - ✔✔The trend component of a time series normally
results from some variable that causes a general rise or decline in values over time.
A linear trend results when demand rises or falls at a constant rate
