What are two main demand triggers in supply chain management?

What are two main demand triggers in supply chain management?

• A. MRP calculation and inventory audit
• B. Forecasting and customer service requests
• C. MRP calculation and customer order initiation
• D. Supplier negotiations and MRP calculation

Answer: (C)

In supply chain management, understanding demand triggers is crucial for effective planning and response strategies. The main demand triggers are events or actions that initiate a need for products or services. The correct answer highlights two significant triggers: MRP (Material Requirements Planning) calculation and customer order initiation. MRP calculation is essential because it helps organizations determine the amount of inventory needed to meet production schedules. It takes into account demand forecasts, inventory levels, and production schedules to ensure that materials are available when required, thereby directly influencing decisions about replenishment and production. Customer order initiation is another critical demand trigger. When a customer places an order, it creates an immediate need for the company to fulfill that order. This can lead to adjustments in inventory management and production activities to ensure timely delivery, influencing the operational side of the supply chain. Both of these elements work together to align inventory levels with actual customer demand, helping to optimize supply chain efficiency and responsiveness.

In supply chain management, understanding demand triggers is crucial for effective planning and response strategies. The main demand triggers are events or actions that initiate a need for products or services. The correct answer highlights two significant triggers: MRP (Material Requirements Planning) calculation and customer order initiation.

MRP calculation is essential because it helps organizations determine the amount of inventory needed to meet production schedules. It takes into account demand forecasts, inventory levels, and production schedules to ensure that materials are available when required, thereby directly influencing decisions about replenishment and production.

Customer order initiation is another critical demand trigger. When a customer places an order, it creates an immediate need for the company to fulfill that order. This can lead to adjustments in inventory management and production activities to ensure timely delivery, influencing the operational side of the supply chain.

Both of these elements work together to align inventory levels with actual customer demand, helping to optimize supply chain efficiency and responsiveness.