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Demand management is a key process in the CSCP framework that aligns customer requirements with supply capabilities. It involves activities such as demand forecasting, demand shaping, and collaboration with stakeholders to ensure that what is produced matches actual customer needs. This process is not only about statistical forecasting but also integrating qualitative insights from sales, marketing, and customers to improve forecast accuracy. Effective demand management reduces uncertainty, minimizes stockouts, and balances inventory investment with service levels. Unlike option A, which focuses only on cost reduction, demand management ensures holistic supply chain performance. Option C misrepresents the concept by prioritizing production over demand alignment. Option D oversimplifies; while lean can reduce variability, safety stock is still required in volatile markets. By accurately capturing demand signals and communicating them across the supply chain, organizations can synchronize supply and demand more effectively, leading to higher customer satisfaction and lower overall costs.