Which term is the planning function that uses forecasts and aggregates items by region or lifecycle stage?

• A. Demand planning
• B. Demand management
• C. Demand pull
• D. Dispatching

Answer: (A)

This item tests how forecasting is turned into a usable, aggregated demand view. Demand planning is the process that takes forecast information and combines items into groups such as regions or lifecycle stages to create an overall demand plan. By aggregating demand in this way, planners can see total expected needs across areas or product life cycles, which then informs capacity, inventory, and procurement decisions. This planning step is forward-looking and forecast-driven, feeding into subsequent scheduling and materials planning.

Demand management focuses on shaping demand through promotions or pricing rather than forecasting and aggregating by region or lifecycle. Demand pull describes a replenishment approach driven by actual orders or consumption rather than forecasts. Dispatching is about sequencing and assigning work to resources, not about creating forecast-based aggregate demand.