Question

2. The information provided by forecasters to supply managers should include:

a. A Measure of forecast uncertainity

b. The recommended capacity buffer size

c. The location production facilities

d. An estimation of overall supply chain risk

Answer 1

d. An estimation of overall supply chain risk

The demand management process is concerned with balancing the customers’ requirements with the capabilities of the supply chain. This includes forecasting demand and synchronizing it with production, procurement, and distribution capabilities.Supply chain risk management is becoming a top priority in procurement, as companies lose millions because of supply disruption, cost volatility, non-compliance fines and incidents that cause damage to both: the organizational brand and reputation.