Certified Supply Chain Professional (CSCP) Practice Exam

What does demand management primarily seek to match?

1. Customer satisfaction and production capacity

2. Production costs and sales revenue

3. Forecasts and actual sales

4. Supplier availability and inventory levels

The correct answer is: Forecasts and actual sales

Demand management primarily seeks to match forecasts and actual sales. This involves using data and analytics to predict customer demand for products and services accurately, allowing organizations to adjust their operations and inventory strategies accordingly. By aligning these forecasts with actual sales data, a company can maintain optimal inventory levels, reduce stockouts or excess inventory, and improve customer satisfaction. Effective demand management is crucial as it enables businesses to plan their resources, allocate capacities, and respond to market variations more effectively. Achieving this balance is essential for ensuring that production and distribution efforts align with the actual market demand, which in turn contributes to overall operational efficiency and profitability.