Certified Supply Chain Professional (CSCP) Practice Exam

What is the role of demand management in APS?

1. To oversee financial resources

2. To forecast production and transportation needs

3. To manage human resources across the supply chain

4. To implement security measures for supply chains

The correct answer is: To forecast production and transportation needs

Demand management plays a crucial role in Advanced Planning Systems (APS) by focusing on forecasting production and transportation needs. It involves the processes and techniques used to estimate future customer demand for products and services. By accurately forecasting demand, organizations can align their production schedules and transportation logistics with anticipated market needs, which helps to optimize inventory levels, reduce carrying costs, and improve service levels. This aspect of demand management ensures that the supply chain operates smoothly, with minimal interruptions due to mismatches between supply and demand. By effectively predicting how much product will be needed and when, companies can better allocate their resources, schedule production runs, and arrange for transportation, which ultimately leads to enhanced customer satisfaction and improved overall operational efficiency. In contrast, overseeing financial resources, managing human resources, and implementing security measures, while important in the overall supply chain management context, do not specifically address the core function of demand management in the context of APS.