SCHM 2301 LATEST 2026 TETS PAPER QUESTIONS AND
ANSWERS MARKED A+
✔✔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
✔✔Forecast Accuracy - ✔✔measure of how closely forecast aligns with demand; actual
minus forecasted
✔✔A positive forecast error indicates - ✔✔overly pessimistic; sold more than forecasted
✔✔A negative value indicates - ✔✔overly optimistic; sold less than forecasted
✔✔Bias - ✔✔tendency to continually over or under predict future demand (forecast
error)
✔✔Mean Forecast Error - ✔✔the average forecast error over a number of periods
✔✔Mean Absolute Deviation (MAD) - ✔✔average of forecast errors, irrespective of
direction, magnitude/size of the deviation/error
✔✔Mean (average) Absolute Percentage Error (MAPE) - ✔✔the MAD adjusted to
measure how large errors are relative to the actual demand quantities (across products)
✔✔operational inefficiencies - ✔✔• Need for extra capacity resources
, • Backlog
• Customer dissatisfaction
• System buffering
• safety stock, safety lead time, capacity cushions, etc.
✔✔Demand Management - ✔✔Requires coordination of many sources of demand info.
Ways to influence the timing or quantity of demand:
• pricing changes, promotions, or sales incentives
• increase demand during low periods
• reduce or postpone demand during peak periods.
• manage the timing of order fulfillment
• negotiate with customers regarding when to take delivery.
• information systems can be used of the availability of certain products and expected
delivery date.
• encourage shifting to alternative products
• Ever rent a car and get upgrade?
✔✔Strategy & Planning - ✔✔establishes the ground rules for the collaborative
relationship such as business goals, responsibilities, checkpoints, etc.
✔✔Demand & Supply Management - ✔✔sales forecasting, order planning/forecasting,
inventory positions, and transit lead times.
✔✔Execution - ✔✔Order Generation, from forecasts to demand to order fulfillment, i.e.
producing, shipping and delivering for consumer purchase.
✔✔Analysis - ✔✔Exception Management and Performance Assessment, monitoring
planning and performance assessment for future improvement.
✔✔Benefits of Collaborative Planning, Forecasting and Replenishment
(CPFR) - ✔✔• Improved customer service through better forecasting techniques
• Lower Inventories for higher profits
• Improved ROI on Technology investment
• Improved relationships between trading partners
• Cost reduction
✔✔Inventory - ✔✔one of the most expensive assets of many companies. It can
represent as much as 60% of total invested capital.
✔✔Roles of Inventory - ✔✔balancing supply and demand, buffers against uncertainties,
enabling economies of buying, enabling geographic specialization
ANSWERS MARKED A+
✔✔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
✔✔Forecast Accuracy - ✔✔measure of how closely forecast aligns with demand; actual
minus forecasted
✔✔A positive forecast error indicates - ✔✔overly pessimistic; sold more than forecasted
✔✔A negative value indicates - ✔✔overly optimistic; sold less than forecasted
✔✔Bias - ✔✔tendency to continually over or under predict future demand (forecast
error)
✔✔Mean Forecast Error - ✔✔the average forecast error over a number of periods
✔✔Mean Absolute Deviation (MAD) - ✔✔average of forecast errors, irrespective of
direction, magnitude/size of the deviation/error
✔✔Mean (average) Absolute Percentage Error (MAPE) - ✔✔the MAD adjusted to
measure how large errors are relative to the actual demand quantities (across products)
✔✔operational inefficiencies - ✔✔• Need for extra capacity resources
, • Backlog
• Customer dissatisfaction
• System buffering
• safety stock, safety lead time, capacity cushions, etc.
✔✔Demand Management - ✔✔Requires coordination of many sources of demand info.
Ways to influence the timing or quantity of demand:
• pricing changes, promotions, or sales incentives
• increase demand during low periods
• reduce or postpone demand during peak periods.
• manage the timing of order fulfillment
• negotiate with customers regarding when to take delivery.
• information systems can be used of the availability of certain products and expected
delivery date.
• encourage shifting to alternative products
• Ever rent a car and get upgrade?
✔✔Strategy & Planning - ✔✔establishes the ground rules for the collaborative
relationship such as business goals, responsibilities, checkpoints, etc.
✔✔Demand & Supply Management - ✔✔sales forecasting, order planning/forecasting,
inventory positions, and transit lead times.
✔✔Execution - ✔✔Order Generation, from forecasts to demand to order fulfillment, i.e.
producing, shipping and delivering for consumer purchase.
✔✔Analysis - ✔✔Exception Management and Performance Assessment, monitoring
planning and performance assessment for future improvement.
✔✔Benefits of Collaborative Planning, Forecasting and Replenishment
(CPFR) - ✔✔• Improved customer service through better forecasting techniques
• Lower Inventories for higher profits
• Improved ROI on Technology investment
• Improved relationships between trading partners
• Cost reduction
✔✔Inventory - ✔✔one of the most expensive assets of many companies. It can
represent as much as 60% of total invested capital.
✔✔Roles of Inventory - ✔✔balancing supply and demand, buffers against uncertainties,
enabling economies of buying, enabling geographic specialization
