APICS Certified Supply Chain Professional (CSCP) — Question 268

Which of the following actions is key to improving forecast accuracy?

Answer options

• A. Using a tracking signal
• B. Reducing cumulative product lead time
• C. Changing from a time series forecasting method to a causal forecasting method
• D. Changing from forecasting at the product family level to the stock keeping unit (SKU) level

Correct answer: B

Explanation

Reducing cumulative product lead time is crucial as it directly affects the responsiveness to customer demand, thus enhancing forecast accuracy. The other options, while they may contribute to the forecasting process, do not address the fundamental timing aspect that lead time reduction impacts. For instance, using a tracking signal or changing forecasting methods may help, but they do not inherently improve lead times.