The goal of supply chain planning is to balance supply and demand in a way that realizes the financial and service objectives of the company. True or False?

• A. False
• B. It focuses on cost minimization only
• C. True
• D. It focuses only on service levels

Answer: (C)

Supply chain planning aims to align what the company can supply with what customers want while pursuing both financial results and service performance. It involves forecasting demand, planning production and procurement, managing inventories, and coordinating distribution so products are available when needed without incurring unnecessary costs. Because funding and service must be balanced, the objective is not to minimize cost alone or maximize service alone; it’s to achieve a harmonious mix that delivers financial targets and desired service levels. Therefore, the statement is true.