Certified Supply Chain Professional (CSCP) Practice Exam

What is the primary goal of managing supply and demand?

1. Achieving customer satisfaction

2. Maximizing production efficiency

3. Demand and supply alignment

4. Reducing operational costs

The correct answer is: Demand and supply alignment

The primary goal of managing supply and demand is to achieve alignment between the two, ensuring that the quantities of product or service available meet the quantities desired by customers. When supply and demand are aligned, businesses can operate more effectively and efficiently, leading to optimal inventory levels. This alignment minimizes the risk of overstocking or stockouts, which can negatively impact customer satisfaction and overall operational efficiency. While customer satisfaction, production efficiency, and operational cost reduction are also important objectives within the broader context of supply chain management, they are often byproducts of effective supply and demand management. For instance, when supply and demand are aligned, it naturally leads to improved customer satisfaction as products are available when customers want them. Likewise, maintaining appropriate inventory levels can contribute to maximizing production efficiency and reducing unnecessary operational costs. However, the core focus remains on the balance between supply and demand.