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CPIM - Basics of Supply Chain Management Questions 56–60 (page: 13)

Updated On: 9-Feb-2026

The contribution made by an operation to the final usefulness of a product is known as:

  1. the customer service level.
  2. value-added.
  3. the cost of quality.
  4. an order winner.

Answer(s): B



An extreme change in demand in the supply position upstream generated by a small change in demand downstream in the supply chain is called the:

  1. efficiency variance.
  2. bullwhip effect.
  3. estimate of error.
  4. stockout probability.

Answer(s): B



The question below is based on the following information:



What is the mean absolute deviation of demand for the data?

  1. 1
  2. 3
  3. 5
  4. 101

Answer(s): B



A 5-year decline in demand for diapers most closely represents which of the following types of forecast patterns?

  1. Irregular
  2. Cyclic
  3. Trend
  4. Seasonal

Answer(s): C



Which of the following statements is true regarding the concept of independent demand?

  1. These items are usually raw materials.
  2. The requirements for these items are usually forecasted.
  3. The demand for these items must be calculated.
  4. The demand for these items is related to demand for other items.

Answer(s): B



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