Certified Supply Chain Professional (CSCP) Practice Exam

What does it mean when supply meets demand accurately?

1. Inventory levels are at a minimum

2. All production schedules are delayed

3. Deadlines are consistently met with minimal overtime

4. Costs associated with production are maximized

The correct answer is: Deadlines are consistently met with minimal overtime

When supply meets demand accurately, it indicates that the organization's operations are effectively aligned with customer needs, which leads to consistent performance in delivering products or services on time. Meeting deadlines with minimal overtime signifies an efficient use of resources and an optimized production schedule. This means that the company has enough inventory to meet demand without excess, production processes are running smoothly, and the workforce is not overburdened, all of which translate to high customer satisfaction and operational efficiency. This situation leads to a positive work environment and helps maintain cost control. The accuracy in matching supply to demand avoids waste and reduces the risk of stockouts or surplus, enhancing overall supply chain performance. Thus, consistent meeting of deadlines with minimal overtime is a clear indicator that supply and demand are effectively balanced.