data sources should be used as part of a demand management process?

In addition to sales history, current customer orders, and forecasted demand, which of the following

data sources should be used as part of a demand management process?
A . Inventory levels
B . Contractual obligations
C . Customer profitability
D . Scheduled marketing activities

View Answer

Answer: D

Explanation:

Demand management is a critical function in supply chain management, aiming to balance supply and demand effectively. In addition to sales history, current customer orders, and forecasted demand, integrating data from scheduled marketing activities is essential.

Here’s why:

Impact on Demand: Scheduled marketing activities, such as promotions, advertising campaigns, and new product launches, can significantly influence customer demand patterns.

Demand Forecasting: Incorporating marketing plans into demand forecasts helps in predicting demand spikes or drops associated with these activities.

Inventory Planning: Understanding upcoming marketing efforts allows for better inventory planning, ensuring sufficient stock levels to meet anticipated demand increases.

Capacity Management: Helps in aligning production and distribution capacity with expected demand fluctuations due to marketing activities.

By considering scheduled marketing activities, businesses can enhance the accuracy of their demand forecasts and improve overall supply chain responsiveness.

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

Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.