The basis for all strategic and planning decisions in a supply chain comes from
A)the forecast of demand.
B)sales targets.
C)profitability projections.
D)production efficiency goals.

Question

Quizplus · Accepted Answer

The forecast of demand is the key factor in determining the entire supply chain strategy, from procurement of raw materials to production, warehousing, and distribution. Without an accurate forecast, companies cannot plan their inventory levels, production schedules, or transportation requirements, leading to inefficiencies, stockouts, and higher costs. Therefore, it is essential to have a reliable and robust demand planning process that takes into account market trends, customer behavior, seasonality, and other factors that may affect demand. Sales targets, profitability projections, and production efficiency goals are all important metrics, but they are secondary to the demand forecast, as they are derived from it.

The Basis for All Strategic and Planning Decisions in a Supply