Preview Questions Demand Planning Manager | Role Specific Skill

Question 1: What is the most effective method to prevent stockouts in an FMCG business?

Which action should you take?

Choose only one option

Using a fixed order quantity system

Reducing the number of stock-keeping units (SKUs)

Implementing an automated reorder system

Increasing the frequency of inventory audits

Question 2: How should a Demand Planning Manager address overstocking issues in FMCG?

Which action should you take?

Choose only one option

By ignoring overstocking and focusing only on sales forecasts.

By reducing production and increasing stock without considering demand.

By maintaining current inventory levels without adjustments.

By adjusting demand forecasts, reducing order quantities, and clearing excess stock through promotions.

Question 3: How does the concept of price elasticity apply to market analysis in the FMCG industry?

Which action should you take?

Choose only one option

It helps predict the impact of price changes on demand

It guides the optimal location for product distribution

It determines the optimal product size for different consumer segments

It identifies the best advertising strategy for new products

Question 4: How do you adjust inventory levels based on demand forecasting accuracy in FMCG?

Which action should you take?

Choose only one option

By adjusting inventory levels manually to match expected demand without considering accuracy

By using fixed reorder points regardless of forecast accuracy

By incorporating forecast error measurements into safety stock and reorder point calculations

By ignoring forecast errors and assuming consistent demand

Question 5: How do you implement "demand smoothing" to improve forecasting accuracy in FMCG?

Which action should you take?

Choose only one option

By ignoring seasonal demand fluctuations to simplify forecasting

By maintaining constant inventory levels without adjusting for demand

By increasing the production capacity to meet high demand without forecasting adjustments

By adjusting demand forecasts to reduce fluctuations and account for seasonal variations or unexpected demand spikes

Question 6: In an FMCG context, what is the impact of stockouts on customer satisfaction?

Which action should you take?

Choose only one option

It does not affect customer satisfaction significantly

It improves customer retention through exclusivity

It may cause a slight decrease in sales, but not significantly

It causes delays, leading to a loss of customers and brand loyalty