Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

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What does a demand plan typically require?

Fixed inventory across all products
Estimates based on historical trends only
A projection of daily inventory requirements
Zero-stock levels for fast-moving items

The correct answer is: A projection of daily inventory requirements

A demand plan is crucial for managing inventory effectively and ensuring that supply meets anticipated customer demand. The creation of a demand plan typically involves a projection of daily inventory requirements. This projection allows businesses to align their inventory levels with expected sales activity, taking into account various factors such as seasonality, promotion strategies, and market trends. By focusing on daily inventory requirements, a business can more accurately manage its stock levels, helping to minimize excess inventory while also preventing stockouts. This comprehensive approach enhances the overall efficiency of the supply chain and facilitates better decision-making regarding production and procurement activities. In contrast, maintaining fixed inventory across all products may not reflect actual demand fluctuations and could lead to inefficiencies. Relying solely on historical trends for estimates also fails to consider current market dynamics and potential changes in consumer behavior. Additionally, aiming for zero-stock levels for fast-moving items could risk losing sales opportunities due to stockouts, which undermines customer satisfaction and business performance. Thus, projecting daily inventory requirements is key to an effective demand plan.