Certified Supply Chain Professional (CSCP) Practice Exam 2025 – The All-in-One Guide to Exam Success!

Question: 1 / 2185

What is a fundamental goal of demand management?

Increase product prices

Minimize lead times

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.

Get further explanation with Examzify DeepDiveBeta

Limit customer choices

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy