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Category Management Association Category-Manager Exam - Topic 1 Question 6 Discussion

Actual exam question for Category Management Association's Category-Manager exam
Question #: 6
Topic #: 1
[All Category-Manager Questions]

What is the primary goal of SKU rationalization in supply chain management?

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Suggested Answer: D

The correct answer is D.

SKU rationalization is about improving the product mix by removing or consolidating items that create unnecessary complexity without contributing enough value. The CPCM course includes Efficient Assortment and Retailer Economics and the Product Supply Chain, which means assortment decisions are not only shopper-facing; they also affect inventory, operations, cost, and execution. The CMKG supply-chain material states that product supply chain affects ''inventory, forecasting, availability, cash flow, service levels, and ultimately the shopper experience.''

Option D is the only answer that reflects the real supply-chain objective: reduce operational complexity by removing slow-moving, duplicated, or redundant SKUs. Option A is the opposite; adding more products can increase complexity. Option B is too aggressive because high-cost products may still be profitable or strategically important. Option C is too narrow because SKU rationalization is not only about seasonal demand.


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