Certified Supply Chain Professional (CSCP) Practice Exam

Which demand management method involves scheduling and promotions?

1. Inventory management

2. Fixed average capacity strategy

3. Dynamic capacity control

4. Supplier collaboration

The correct answer is: Fixed average capacity strategy

The demand management method that involves scheduling and promotions is accurately represented by the fixed average capacity strategy. This approach focuses on planning operations based on anticipated demand levels, allowing businesses to manage their resources more effectively. Utilizing scheduled promotions aligns with this method as it helps to stimulate demand during specific times, thereby optimizing production and inventory levels. By maintaining a fixed average capacity, organizations can ensure they have the necessary resources available during peak demand periods, while also managing costs effectively during slower periods. This method leverages marketing strategies, such as promotional campaigns, to encourage customer purchases and streamline operations to meet fluctuating demand without excessive strain on resources.