APICS Certified in Production and Inventory Management (CPIM) — Question 3

In the sales and operations planning (S&OP) process, the demand management function provides:

Answer options

• A. information not included in the forecast.
• B. a measurement of forecast accuracy.
• C. a correction of forecast errors.
• D. a more detailed forecast.

Correct answer: C

Explanation

The correct answer is C because the demand management function is responsible for identifying and correcting forecast errors to enhance accuracy. Options A, B, and D do not accurately describe the primary role of demand management, as they refer to information gaps, accuracy assessment, and detail, respectively, rather than error correction.