Certified Supply Chain Professional (CSCP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Certified Supply Chain Professional (CSCP) Practice Exam. Prepare with multiple choice questions, each accompanied by hints and explanations. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is a fundamental goal of demand management?

Increase product prices
Minimize lead times
Ensure production is aligned with forecasted demand
Limit customer choices

The correct answer is: Ensure production is aligned with forecasted demand

A fundamental goal of demand management is to ensure that production is aligned with forecasted demand. This involves accurately predicting customer needs in order to balance supply and demand effectively. When organizations can align their production schedules and inventory levels with what they anticipate customers will require, they enhance their ability to meet customer expectations while minimizing excess inventory and associated costs. Engaging in demand management practices helps companies to optimize their resources, improve service levels, and reduce waste. By forecasting demand accurately, they can adjust their operations proactively, improving overall efficiency and responsiveness to market changes. In contrast, increasing product prices, minimizing lead times, or limiting customer choices do not inherently align with the objective of ensuring that production meets anticipated demand. These actions can lead to negative customer experiences or may not address the fundamental need to balance supplychain capabilities with market needs.