Certified Supply Chain Professional (CSCP) Practice Exam

After revising a demand forecast, what is the next step in operations planning?

1. Finalizing the demand plan and passing it to supply

2. Creating a production budget

3. Reviewing previous sales drives

4. Adjusting pricing strategies

The correct answer is: Finalizing the demand plan and passing it to supply

Finalizing the demand plan and passing it to supply is the logical next step after revising a demand forecast. This process involves confirming the revised expectations for future demand, which ensures that the supply chain can effectively align its resources, inventory levels, and production schedules with the anticipated customer requirements. By finalizing the demand plan, organizations establish a clear, actionable guide for their operations. This step is critical because it helps coordinate various functions within the supply chain, enabling all stakeholders—from production to logistics—to operate with a shared understanding of demand expectations. Once the demand plan is finalized and communicated to supply chain partners, they can begin necessary adjustments to fulfill this demand, whether that involves increasing production capacities, managing supplier relationships, or optimizing inventory strategies. The other options, such as creating a production budget, reviewing previous sales drives, and adjusting pricing strategies, can indeed play vital roles in the overall operations planning process. However, these steps typically come after the demand plan has been finalized, as their effectiveness relies heavily on having an accurate and agreed-upon forecast to base those decisions on. Hence, finalizing the demand plan positions the organization to effectively move forward in its operations planning and execution.