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Question 48 - CSCP discussion

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Medium-term demand management projections are used primarily to:

A.
complete strategic business planning of facilities.
Answers
A.
complete strategic business planning of facilities.
B.
complete forecasts at the item level.
Answers
B.
complete forecasts at the item level.
C.
aggregate demand for production planning.
Answers
C.
aggregate demand for production planning.
D.
develop the master production schedule.
Answers
D.
develop the master production schedule.
Suggested answer: C

Explanation:

Medium-term demand management projections typically cover a horizon of several months to a few years and are essential for production planning. Here's the detailed explanation:

Aggregate Demand: Medium-term projections aggregate demand at a higher level, such as product families or groups, to facilitate production planning and capacity management.

Production Planning: These projections are used to plan production schedules, workforce requirements, and resource allocation, ensuring that manufacturing operations can meet anticipated demand.

Inventory Management: Helps in maintaining optimal inventory levels by balancing supply and demand over the medium term.

Alignment with Business Goals: Ensures that production plans are aligned with the company's strategic goals and market demands.

While medium-term projections also support other activities, such as developing the master production schedule (MPS), their primary use is in aggregating demand for effective production planning.

Vollmann, T. E., Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2005). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

asked 16/09/2024
Himal Rai
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