Certified Supply Chain Professional (CSCP) Practice Exam

What characterizes the operational level of APS?

1. It focuses on long-term strategic decisions.

2. It creates demand forecasts and transport plans.

3. It determines facility locations.

4. It handles inventory budget allocations.

The correct answer is: It creates demand forecasts and transport plans.

The operational level of Advanced Planning Systems (APS) is characterized by its focus on short-term activities and decisions that are essential for the day-to-day functioning of supply chains. Specifically, this level emphasizes the creation of demand forecasts and the development of transport plans to ensure that resources are allocated efficiently and that products are delivered to meet customer needs in a timely manner. This functionality is critical because accurate demand forecasting allows organizations to minimize stockouts and excess inventory, while effective transport planning ensures that goods are moved efficiently within the supply chain. By concentrating on these aspects, the operational level of APS supports the overall performance and responsiveness of the supply chain to real-time conditions. On the other hand, long-term strategic decisions, such as facility locations, are typically handled at higher levels of planning, which focus on broader organizational goals and resource commitments. Similarly, inventory budget allocations are also more aligned with tactical planning, where the focus shifts from daily operations to budgetary controls and resource management over longer periods.