CPIM-8.0 Exam Dumps - Certified in Planning and Inventory Management (CPIM 8.0)

The tracking signal is a measurement that indicates there may be bias in the forecast model. The tracking signal is the ratio of the cumulative forecast error to the mean absolute deviation (MAD). It measures how well the forecast is tracking the actual demand over time. A tracking signal of zero means that the forecast is perfectly accurate. A tracking signal within the range of -4 to +4 is considered acceptable. A tracking signal outside this range indicates that the forecast is consistently overestimating or underestimating the demand, which implies that there is bias in the forecast model. Bias is the tendency of a forecast to be consistently higher or lower than the actual demand. Bias can be caused by factors such as inaccurate data, inappropriate forecasting methods, or changes in demand patterns. References:

Managing Supply Chain Operations, Chapter 5: Demand Management and Forecasting, Section 5.2: Forecasting Methods, Subsection 5.2.3: Forecast Accuracy and Control

CPIM Exam Content Manual, Module 3: Demand, Section 3.2: Forecasting, Subsection 3.2.2: Forecasting Methods, Subsubsection 3.2.2.3: Forecast Accuracy and Control

 An order winner is a product attribute that influences customers to choose one product over another. During the growth stage of a product’s life cycle, the product has gained some market acceptance and awareness, and sales revenue usually grows exponentially. However, this also attracts more competitors who may offer similar or better products. Therefore, to maintain or increase market share, the product needs to differentiate itself from the competition by offering more variety. Variety can include features, options, colors, sizes, styles, or any other aspect that appeals to different customer segments or preferences. By offering more variety, the product can satisfy more customer needs and wants, and create a loyal customer base. Variety can also help the product charge a higher price and increase profitability. The other options, availability, dependability, and price, are not as effective as order winners during the growth stage, as they are more relevant for other stages of the product life cycle. Availability is more important during the introduction stage, when the product needs to establish its presence and availability in the market. Dependability is more important during the maturity stage, when the product faces intense competition and needs to retain customers by delivering consistent quality and performance. Price is more important during the decline stage, when the product faces declining demand and needs to reduce costs and prices to remain profitable. References:

The Growth Stage Of The Product Life Cycle [Explained]

Product Life Cycle - Definition, Stages, Usage

The four stages of the product life cycle