Certified Supply Chain Professional (CSCP) Practice Exam

What is a demand plan?

1. A summary of customer complaints

2. A document requesting goods/services from the supply side

3. A report on past sales performance

4. A list of potential new product ideas

The correct answer is: A document requesting goods/services from the supply side

A demand plan is primarily a document that outlines the forecasted demand for products and services within a specific time frame, which typically informs the supply chain decisions regarding how much to produce or stock. It is crucial in aligning production, inventory, and procurement efforts with anticipated customer demand. The correct answer emphasizes the relationship between demand forecasting and supply management. A demand plan considers historical sales data, market trends, and customer behavior to estimate future needs, enabling organizations to request goods or services from suppliers in a way that minimizes excess inventory and stockouts. When comparing this to the other options, a summary of customer complaints does not relate to demand forecasting or planning; it instead focuses on addressing customer satisfaction issues. A report on past sales performance provides insights into what has already occurred but does not adjust those insights into actionable demand forecasts. Lastly, a list of potential new product ideas signifies innovation and future strategy but does not address the immediate needs for supply based on current or forecasted demand.