Certified Supply Chain Professional (CSCP) Practice Exam

What is a mix forecast aimed at determining?

1. The total sales for an entire product line

2. The proportion of different products within a specific family

3. The cost trends of various products

4. The marketing effectiveness of product families

The correct answer is: The proportion of different products within a specific family

A mix forecast is designed primarily to ascertain the proportion of different products within a specific product family. This type of forecast focuses on understanding how various products contribute to overall sales within a particular category, allowing organizations to plan for production and inventory needs based on the expected demand for each individual product. By analyzing these proportions, companies can make more informed decisions regarding resource allocation, inventory management, and sales strategies. This is crucial because it provides insights into which products are expected to perform better or worse, enabling better targeting of marketing efforts and optimizing stock levels to meet anticipated demand. The other options, such as determining total sales for an entire product line or assessing cost trends, do not align with the specific focus of a mix forecast, which is more concerned with the relative contributions of individual products within a defined grouping rather than the overarching performance of the entire line or cost considerations.