CPIM Practice Exam 2026 – The All-In-One Guide to Achieving Exam Success!

Employing a chase production strategy involves adjusting production levels to match fluctuations in customer demand closely. A frequent challenge encountered in this approach is the unpredictability and volatility of customer demand. Unforeseen demand fluctuations can lead to situations where production must rapidly increase or decrease, which can disrupt operations and lead to inefficiencies.

This strategy relies on an accurate understanding of demand patterns; however, when demand does not conform to forecasts or experiences sudden spikes or drops, it places a strain on the production process. Companies may struggle to ramp up production quickly in response to a sudden increase in demand, leading to stockouts or missed sales opportunities. Conversely, if demand decreases unexpectedly, a company might be left with excess capacity or waste, impacting profitability.

While other options address challenges that can also arise in production strategies, they do not capture the core issue associated specifically with chase production, which is primarily linked to the uncertainty in customer demand and the need for agility in the production process.