Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is NOT a component of demand management?

1. Planning demand

2. Communicating demand

3. Influencing demand

4. Setting pricing policies

The correct answer is: Setting pricing policies

Demand management is an essential part of supply chain management, focusing on understanding, anticipating, and influencing customer demand to improve supply chain efficiency and service levels. The primary components of demand management typically include planning demand, communicating information about demand, and influencing demand through various techniques and strategies. Planning demand involves analyzing historical data, forecasting future demand, and preparing for expected changes in the market. This sets the groundwork for how a company ready itself to meet customer needs. Communicating demand focuses on sharing data regarding customer consumption patterns internally and externally, allowing all stakeholders to align their actions and strategies accordingly. Effective communication helps ensure that supply chain partners are informed about demand shifts, minimizing disruptions. Influencing demand encompasses the measures taken to shape customer purchasing behavior, which can involve promotional strategies, marketing campaigns, and other tactics aimed at steering customers toward desired products or services. Setting pricing policies does play a role in overall supply chain management and can impact demand indirectly by affecting customer price sensitivity. However, it is not a direct component of demand management itself. Pricing strategies are typically part of broader marketing and financial management frameworks rather than the core focus of demand management specifically.