SCMT 2103 CORRECT EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔low - ✔✔If forecast error is positive, then the forecast was too ______.
✔✔high - ✔✔When the forecast is too negative, the forecast error is _______.
✔✔bias - ✔✔The RSFE and MFE are used to measure ______ in forecast error.
✔✔Standard deviation of forecast error - ✔✔Which forecast error metric is used in the
traditional calculation of safety stock in automated systems?
✔✔Actual demand for period t minus the forecasted demand for period t - ✔✔Some
measures of forecast accuracy include the running sum of forecast errors, the mean
absolute percentage error, and mean forecast error. The formula for each is dependent
on the forecast error, which is calculated by using the equation:
✔✔cannot tell what magnitude would be from bias - ✔✔A forecast is known to be
unbiased. The magnitude must then _____.
✔✔low - ✔✔If the RSFE or MFE is positive, then on average the forecasts are too
______.
✔✔more - ✔✔Assume the two SKUs have the same MAPE. However, SKU A has a
higher standard deviation of forecast error than SKU B. All other things being equal, we
would carry ______ safety stock for SKU A.
✔✔a) Generate aggregate demand forecast
b) Modify forecast with demand intelligence
c) Create a consensus forecase
d) Create "rough cut" capacity plan
, e) Execute at individual item (SKU) level against demand
f) Measure performance - ✔✔According to the textbook, what is the appropriate order
for the steps of a S&OP process?
✔✔Quantify the gap between supply and demand - ✔✔A purpose of the consensus
meeting is to _______________________.
✔✔consensus - ✔✔A key output of a S&OP process is a ______________ forecast.
✔✔Through pricing actions - ✔✔By taking a proactive demand management approach,
how does Dell regulate demand for products?
✔✔Product B - ✔✔Based on the table below, which product's forecast is the least
biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 14% 440 46,532
B 22% 220 22,606
C 18% 500 53,671
D 8% 645 66,260
✔✔CPFR - ✔✔___________ is a concept that encourages and facilitates collaborative
processes between members of a supply chain.
✔✔forecasting; replenishment - ✔✔CPFR is a process to integrate the ______ and
________ processes between suppliers and retailers.
✔✔Vender managed inventory (VMI) - ✔✔According to the textbook, CPFR is an
extension of which inventory management strategy?
✔✔$1,200,000 - ✔✔Average inventory last year was $200,000 and turns were 6. What
was cost of goods sold last year?
✔✔$150,000,000 - ✔✔The inventory holding cost factor is 10% and the average
inventory next year is expected to be $1.5 billion. What is the expected inventory
holding cost?
✔✔33 - ✔✔MegaMart operates 365 days a year. Annual inventory turns of a popular
product is 11. How many days of supply does that represent?
QUESTIONS SET A+
✔✔low - ✔✔If forecast error is positive, then the forecast was too ______.
✔✔high - ✔✔When the forecast is too negative, the forecast error is _______.
✔✔bias - ✔✔The RSFE and MFE are used to measure ______ in forecast error.
✔✔Standard deviation of forecast error - ✔✔Which forecast error metric is used in the
traditional calculation of safety stock in automated systems?
✔✔Actual demand for period t minus the forecasted demand for period t - ✔✔Some
measures of forecast accuracy include the running sum of forecast errors, the mean
absolute percentage error, and mean forecast error. The formula for each is dependent
on the forecast error, which is calculated by using the equation:
✔✔cannot tell what magnitude would be from bias - ✔✔A forecast is known to be
unbiased. The magnitude must then _____.
✔✔low - ✔✔If the RSFE or MFE is positive, then on average the forecasts are too
______.
✔✔more - ✔✔Assume the two SKUs have the same MAPE. However, SKU A has a
higher standard deviation of forecast error than SKU B. All other things being equal, we
would carry ______ safety stock for SKU A.
✔✔a) Generate aggregate demand forecast
b) Modify forecast with demand intelligence
c) Create a consensus forecase
d) Create "rough cut" capacity plan
, e) Execute at individual item (SKU) level against demand
f) Measure performance - ✔✔According to the textbook, what is the appropriate order
for the steps of a S&OP process?
✔✔Quantify the gap between supply and demand - ✔✔A purpose of the consensus
meeting is to _______________________.
✔✔consensus - ✔✔A key output of a S&OP process is a ______________ forecast.
✔✔Through pricing actions - ✔✔By taking a proactive demand management approach,
how does Dell regulate demand for products?
✔✔Product B - ✔✔Based on the table below, which product's forecast is the least
biased?
Product Mean Absolute Percent Error (MAPE) Mean Forecast Error (MFE) Standard
Deviation of Forecast Error
A 14% 440 46,532
B 22% 220 22,606
C 18% 500 53,671
D 8% 645 66,260
✔✔CPFR - ✔✔___________ is a concept that encourages and facilitates collaborative
processes between members of a supply chain.
✔✔forecasting; replenishment - ✔✔CPFR is a process to integrate the ______ and
________ processes between suppliers and retailers.
✔✔Vender managed inventory (VMI) - ✔✔According to the textbook, CPFR is an
extension of which inventory management strategy?
✔✔$1,200,000 - ✔✔Average inventory last year was $200,000 and turns were 6. What
was cost of goods sold last year?
✔✔$150,000,000 - ✔✔The inventory holding cost factor is 10% and the average
inventory next year is expected to be $1.5 billion. What is the expected inventory
holding cost?
✔✔33 - ✔✔MegaMart operates 365 days a year. Annual inventory turns of a popular
product is 11. How many days of supply does that represent?
