APICS Certified Supply Chain Professional (CSCP) — Question 460

A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then:

Answer options

• A. averaging total demand and spreading it evenly across all items.
• B. disaggregating demand to the item level based on marketing input.
• C. disaggregating demand to the item level based on historical proportions.
• D. allocating demand to each production site.

Correct answer: C

Explanation

The correct answer is C because disaggregating demand based on historical proportions allows for a more accurate reflection of past sales trends for each item. Option A is incorrect as it suggests an even distribution that does not consider historical differences. Option B relies on marketing input, which may not be as reliable as historical data. Option D focuses on production site allocation and does not address the forecasting of demand at the item level.