Final answer:
Before defining customer service objectives in a Market Driven Supply Chain, one should first develop a demand and supply model to understand market dynamics without the need for specific numerical data.
Step-by-step explanation:
According to the concept of Market Driven Supply Chain, directly before you define customer service objectives, you first should develop a demand and supply model to understand the market dynamics before any particular event. This involves constructing a graph with a demand curve, labeled Do, and a supply curve, labeled So, to represent the original relationships between demand and supply. This analytical step does not require specific numbers on the price and quantity axes, but rather relies on the basic principles of demand and supply.
Once this model is established, it serves as a baseline for understanding customer needs and can be used to effectively set objectives that are aligned with market demand. Considering what economists mean by demand and supply is essential, as well as how these two factors interact within a market.