CPIM Practice Exam

What describes the function of recognizing all demands for goods and services to support the marketplace?

1. Marketing strategy

2. Demand management

3. Sales management

4. Inventory control

The correct answer is: Demand management

The function of recognizing all demands for goods and services to support the marketplace is accurately described by demand management. This process involves analyzing and understanding customer needs and forecasting demand to ensure that the supply chain can effectively meet those needs. Effective demand management ensures that products are available when needed, aligning with customer expectations and market trends. This function is fundamental within supply chain management as it takes into account various factors such as market conditions, seasonality, and promotional activities that influence customer demand. By recognizing and responding to these demands, organizations can optimize inventory levels, reduce lead times, and improve customer satisfaction, ultimately enhancing their competitive advantage. Other options may focus on different aspects of business operations. For example, while marketing strategy involves promoting products and engaging with customers, it does not specifically address the comprehensive recognition and analysis of demand. Sales management is more concerned with the strategies for selling products and managing sales teams rather than the entire scope of demand. Inventory control, on the other hand, relates to managing stock levels and does not encompass the broader task of recognizing and analyzing demand in the market.