CDPP Supply Chain Integration

Question 1

What is the relationship between demand planning and supply chain management?

Accepted Answer

Demand planning drives supply chain decisions including procurement, production, inventory, and distribution

Answer

They are completely unrelated functions

Answer

Supply chain has no impact on demand planning

Answer

Demand planning only affects marketing activities

Question 2

What is lead time and why is it important in demand planning?

Accepted Answer

The time between ordering and receiving goods, which affects how far ahead demand must be forecasted

Answer

The time it takes to walk from one end of a warehouse to another

Answer

The time a leader spends planning meetings

Answer

Only relevant for online retail orders

Question 3

What is demand variability and how is it measured?

Accepted Answer

The degree of fluctuation in demand over time, measured by standard deviation or coefficient of variation

Answer

The variety of products demanded by customers

Answer

The variability of demand planning software features

Answer

Only seasonal demand changes

Question 4

What is the role of demand planning in inventory optimization?

Accepted Answer

It provides the demand forecast that determines optimal inventory levels, reorder points, and safety stock quantities

Answer

Demand planning has no connection to inventory decisions

Answer

Only the warehouse manager determines inventory levels

Answer

Inventory optimization is done independently of demand forecasts

Question 5

What is postponement strategy and how does demand planning support it?

Accepted Answer

Delaying final product configuration until demand signals are clearer, supported by accurate demand planning at the component level

Answer

Postponing demand planning meetings to a later date

Answer

Delaying product launches indefinitely

Answer

A strategy of always being late to market

Question 6

How does demand planning integrate with financial planning?

Accepted Answer

Demand forecasts translate into revenue projections, COGS estimates, and inventory investment plans for financial budgets

Answer

Demand planning and finance never interact

Answer

Only the CFO does demand planning

Answer

Financial plans are created independently of demand forecasts