Council of Supply Chain Management Professionals (CSCMP) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What can happen if a company cannot keep up with demand in a pull supply chain?

They may increase customer satisfaction.

They could lose sales and customers.

When a company operates within a pull supply chain, it relies heavily on actual demand signals to drive production and inventory levels. If a company cannot keep up with this demand, it directly affects its ability to meet customer needs. One of the primary consequences is the potential loss of sales and customers. When customers want a product that is unavailable, they may turn to competitors, resulting in a decrease in market share and revenue for the company.

Additionally, failing to fulfill demand can lead to dissatisfaction among existing customers, who may feel frustrated by stockouts or delays. This can erode trust in the brand and diminish customer loyalty over time. Therefore, maintaining a balance between supply and demand is crucial in a pull system, and any shortfall can have significant negative implications for a company's sales and customer base.

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They will strengthen supplier relationships.

They might reduce production costs.

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