Transportation Operations LINCS Practice Exam

The demand planning function initiates requisitions for:

1. Sales

2. Suppliers

3. Warehousing

4. Procurement

The correct answer is: Procurement

The demand planning function is critical to ensuring that an organization can meet customer needs while optimizing inventory levels. When it comes to requisitioning, the primary focus of demand planning is to anticipate future demand for products or services. This forecasting informs the organization when and what to procure in order to fulfill that anticipated demand effectively. The requisitions initiated by the demand planning function are specifically directed towards procurement. This encompasses the process of acquiring the goods and services necessary to meet the expected demand. By accurately forecasting and managing these requisitions, demand planning helps organizations maintain the right levels of inventory, minimize costs, and enhance operational efficiency. While other aspects like sales, suppliers, and warehousing are involved in the overall supply chain and logistics process, the direct action initiated by the demand planning function specifically relates to procurement activities. This is essential for ensuring that the organization is prepared to meet customer demand as it arises.