Demand Forecasting Practice Exam

About Demand Forecasting
Demand forecasting is the process of making estimations about future customer demand over a defined period, using historical data and other information.

It is a technique for estimation of probable demand for a product or services in the future. It is based on the analysis of past demand for that product or service in the present market condition. Demand forecasting should be done on a scientific basis and facts and events related to forecasting should be considered.

Therefore, in simple words, we can say that after gathering information about various aspects of the market and demand based on the past, an attempt may be made to estimate future demand. This concept is called forecasting of demand.

Types of Demand Forecasting:
•    Passive Demand Forecasting: Passive Demand Forecasting is carried out for stable businesses with very conservative growth plans. Simple extrapolations of historical data are carried out with minimal assumptions. This is a rare type of forecasting limited to small and local businesses.
•    Active Demand Forecasting: Active Demand Forecasting is carried out for scaling and diversifying businesses with aggressive growth plans in terms of marketing activities, product portfolio expansion and consideration of competitor activities and external economic environment.
•    Short-term Demand Forecasting: Short-term Demand Forecasting is carried out for a shorter term period of 3 months to 12 months. In the short term, the seasonal pattern of demand and the effect of tactical decisions on the customer demand are taken into consideration.
•    Medium to long-term Demand Forecasting: Medium to long-term Demand Forecasting is typically carried out for more than 12 months to 24 months in advance (36-48 months in certain businesses). Long-term Forecasting drives the business strategy planning, sales and marketing planning, financial planning, capacity planning, capital expenditure, etc.
•    External macro level Demand Forecasting: This type of Forecasting deals with the broader market movements which depend on the macroeconomic environment. External Forecasting is carried out for evaluating the strategic objectives of a business like product portfolio expansion, entering new customer segments, technological disruptions, a paradigm shift in consumer behavior and risk mitigation strategies.
•    Internal business level Demand Forecasting: As the name suggests, this type of Forecasting deals with internal operations of the business such as product category, sales division, financial division, and manufacturing group. This includes annual sales forecast, estimation of COGS, net profit margin, cash flow, etc.

Demand Forecasting has gained immense popularity across the globe resulting in huge demand for certified professionals.

Why is Demand Forecasting important?
Demand is the most important aspect for business for achieving its objectives. Many decisions of business depend on demand like production, sales, staff requirement, etc. Forecasting is the necessity of business at an international level as well as domestic level.
Following is the significance of Demand Forecasting:
•    Fulfilling objectives of the business
•    Preparing the budget
•    Taking management decision
•    Evaluating performance etc.

Certified Demand Forecasting professionals, executives and managers are in high demand in companies across the globe.

Important Concepts for Demand Forecasting Practice Exam

• Methods of Forecasting
• Just-in-time
• Sales Forecasting
• Demand Planning and Forecasting
• Collaborative, Planning, Forecasting, & Replenishment (CPFR)

Who should take the Demand Forecasting Exam?
•    Logistics or SCM or sales professionals
•    Business owners or Entrepreneurs
•    Anyone who wants to assess their demand management skills
•    SCM or Sales consultants
•    Logistics or SCM or sales managers and senior executives
•    Professionals working in outsourced companies responsible for Logistics or SCM or sales
•    Individuals who encounters Demand forecasting within their day-to-day job

Demand Forecasting Practice Exam Objectives

Demand Forecasting exam focuses on assessing your skills and knowledge in concepts and application of demand forecasting.

Demand Forecasting Practice Exam Pre-requisite

There are no prerequisites for the Demand Forecasting exam. Candidate should be well versed  in demand forecasting to clear the exam.

Demand Forecasting Certification Course Outline

1. Forecasting Demand
1.1 Methods of Forecasting
1.2 Judgmental Forecasts
1.3 Time Series
1.4 Causal Forecasting
1.5 Planning Forecasts

2. Just-in-time
2.1 Principles of just-in-time
2.2 Achieving just-in-time operations
2.3 JIT Implementation Design
2.4 Benefits and Disadvantages
2.5 Extending JIT
2.6 Comparisons With Other Methods


3. Sales Forecasting
3.1 Types of Personal-Selling Objectives
3.2 Market Potential
3.3 Analyzing Market Potential
3.4 Market Indexes
3.5 Sales Potential and Sales Forecasting
3.6 Sales Forecasting Methods
3.7 Qualitative Forecasting Methods
3.8 Poll of Sales Force Opinion
3.9 Survey of Customers’ Buying Plans
3.10 Projection of Past Sales
3.11 Moving Average Method
3.12 Regression Analysis
3.13 Econometric Model Building and Simulation
3.14 Converting Industry Forecast to Company Sales Forecast

4. Demand Planning and Forecasting
4.1 Role of Forecasting & Planning in Decision Making
4.2 Demand Planning
4.3 Forecasting & Planning Process
4.4 Consumption Based Forecasting & Planning
4.5 Consensus Forecasting & Planning
4.6 Sales & Operations Planning Process
4.7 Collaborative, Planning, Forecasting, & Replenishment (CPFR)

Exam Format and Information
Certification name – Demand Forecasting Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199