Certified Supply Chain Professional (CSCP) Practice Exam

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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!

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What is the main goal of demand forecasting in supply chain management?

To predict customer behavior
To match supply with future customer demand
To increase market share
To set pricing strategies

The correct answer is: To match supply with future customer demand

The primary goal of demand forecasting in supply chain management is to match supply with future customer demand. Accurate demand forecasting enables organizations to anticipate customer needs, allowing them to align their production, inventory, and distribution strategies accordingly. By having a clearer understanding of anticipated demand, companies can optimize their resources, reduce excess inventory, minimize stockouts, and respond effectively to market changes. This proactive approach is crucial for maintaining efficiency and ensuring that customers receive their desired products in a timely manner. While predicting customer behavior can provide insights into buying trends, it does not directly ensure that supply levels are adjusted to meet actual demand. Similarly, increasing market share or setting pricing strategies are important business objectives, but they are not the primary focus of demand forecasting. The essence of demand forecasting lies in its ability to facilitate better supply chain planning, ensuring that the organization can meet customer expectations while maintaining operational efficiency.