Zara's supply chain strategy is designed to achieve what objective?

Zara's supply chain strategy is primarily focused on aligning supply with customer demand, which is why the objective of "supply more closely matching customer demand" is the correct answer. This alignment is achieved through agile supply chain practices that allow Zara to quickly respond to changing consumer preferences and trends.

Zara's approach includes producing limited quantities of its products and frequently updating its inventory. This not only keeps the product offerings fresh and exciting for customers but also minimizes the risk of excess stock. By closely monitoring customer buying patterns and feedback, Zara can adjust its production schedules accordingly, ensuring that what is available in stores reflects current market demand.

In contrast, focusing on maximizing production costs does not align with Zara's strategy, as the company prioritizes efficiency and responsiveness over merely reducing manufacturing expenses. Similarly, while providing extensive product variety can be beneficial, Zara’s model emphasizes rapid turnover of styles rather than an extensive range at any given time. Reducing lead times in manufacturing is important as well but is a means to the end of matching supply with demand rather than an objective in itself. Ultimately, Zara's success stems from its ability to anticipate and meet customer desires through a responsive supply chain.