Forecasting and Demand Planning is a subfunction of which foundation?

Forecasting and Demand Planning is a subfunction of which foundation?

• A. Operations Management
• B. Supply Management
• C. Logistics Management
• D. Integration

Answer: (A)

Forecasting and demand planning focus on estimating future demand and aligning production and inventory decisions. This activity sits in operations management, which covers planning, scheduling, and controlling the transformation of inputs into outputs. The other areas handle sourcing (supply management), movement and storage (logistics management), or cross-functional coordination (integration); however, forecasting and demand planning are central to the operations management function that plans how a company produces and delivers goods and services.

Forecasting and demand planning focus on estimating future demand and aligning production and inventory decisions. This activity sits in operations management, which covers planning, scheduling, and controlling the transformation of inputs into outputs. The other areas handle sourcing (supply management), movement and storage (logistics management), or cross-functional coordination (integration); however, forecasting and demand planning are central to the operations management function that plans how a company produces and delivers goods and services.