Transportation Operations LINCS Practice Exam

Purchase requisitions define items that need to be purchased and are initiated by:

1. Finance

2. Sales

3. Demand planning

4. Customers

The correct answer is: Demand planning

Purchase requisitions are critical documents within the procurement process that specify the items or services needed by an organization. They are typically initiated by the department responsible for identifying and forecasting the need for these items, which is often the demand planning team. This team analyzes trends, historical data, and projections to determine what materials are necessary to meet production goals or service commitments. The role of demand planning is to ensure that the organization has the right quantity of goods available at the right time. When demand planning identifies a need for additional inventory or supplies, a purchase requisition is generated to communicate this need to the purchasing or procurement team. This process helps maintain an efficient supply chain and ensures that the organization can meet its operational objectives without delays caused by stockouts. In contrast, while finance might oversee the budget for purchases, they typically do not initiate requisitions. Sales may have input regarding what products are needed based on customer orders, but they do not directly initiate the requisitions. Similarly, customers express their needs through orders, but they are not involved in the internal process of creating purchase requisitions. Therefore, the initiation of purchase requisitions being tied to demand planning reflects an understanding of organizational operations and the importance of anticipating needs before they arise.