Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

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 does base demand refer to?

Short-term peak demand
Long-term average demand for a good/service
Annual sales targets
Projected future demand

The correct answer is: Long-term average demand for a good/service

Base demand refers to the long-term average demand for a good or service. This concept is crucial in supply chain management as it helps organizations understand the consistent level of demand that can be expected over a specific period. Base demand acts as a foundational reference point from which businesses can analyze fluctuations in demand due to seasonal effects, promotions, or market changes. Recognizing base demand allows companies to develop robust forecasting models and inventory strategies, ensuring that they can efficiently meet customer needs without overstocking or understocking. By accurately identifying and analyzing base demand, organizations can achieve a better balance in their supply chain operations, leading to improved customer satisfaction and cost efficiency.