CSCP practice question 14 of 35

Which of the following factors would typically represent period demand?

Full set: 627 questions
Answer options
A: National sates projections, on-hand inventory, and product life cycle
B: Customer orders, product life cycle, and forecasts
C: On-hand inventory, promotions, and national sales projections
D: Forecasts, customer orders, and promotions Correct answer
Correct Answer:
D. Forecasts, customer orders, and promotions
Explanation

Period demand represents the total demand for an item over a specific time interval. It is an aggregation of various demand streams. The primary components used to calculate or project period demand are the statistical forecast (baseline demand), actual customer orders already received for that period (which consume the forecast), and any anticipated additional demand resulting from planned promotions, sales events, or other marketing activities.

Why Incorrect

A. On-hand inventory is a measure of supply, not a component of demand. Product life cycle is an input to forecasting strategy.
B. Product life cycle is a strategic consideration that influences the forecast, not a direct numerical component of period demand itself.
C. On-hand inventory is a supply-side factor and is not included in the calculation of demand.

References

1. APICS CSCP Learning System, Module 2, Section A, "Demand Management." This section details the components of demand, including forecasts, actual orders, and promotional demand.

2. Vollmann, T. E., Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2005). Manufacturing Planning and Control for Supply Chain Management (5th ed.). McGraw-Hill. Chapter 2, "Demand Management," explains how demand is composed of forecasts, customer orders, and other sources like promotions.

3. MIT OpenCourseWare. (2016). 15.762, Supply Chain Planning. Lecture notes on Demand Forecasting discuss the aggregation of different demand sources (e.g., base demand, promotional lift) to determine total period demand.

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