Certified Supply Chain Professional (CSCP) Practice Exam

What is forecasting primarily concerned with?

1. Estimating future profits

2. Predicting sales and product usage

3. Determining marketing strategies

4. Assessing supplier reliability

The correct answer is: Predicting sales and product usage

Forecasting is primarily focused on predicting sales and product usage, as it involves analyzing historical data and trends to estimate future demand for products or services. This process is essential for supply chain management as it enables organizations to anticipate customer needs, adjust inventory levels, and optimize production schedules. By accurately forecasting sales and product usage, businesses can make informed decisions that enhance efficiency and customer satisfaction. While estimating future profits, determining marketing strategies, and assessing supplier reliability are important aspects of overall business operations, they are not the primary focus of forecasting. Forecasting serves as a foundational element that informs these other areas by providing insights into expected demand and market conditions. This allows companies to align their marketing efforts, financial projections, and supplier relationships with anticipated market realities.