Which of the following statements is true regarding assortment planning?

Assortment planning is a critical aspect of category management that involves selecting the right range of products to meet customer needs while considering practical constraints. The statement that it should reflect consumer demand and space limitations is correct because effective assortment planning aims to align the product selection with what consumers actually want to purchase, ensuring that the right products are available at the right time.

Understanding consumer demand is essential for creating an assortment that resonates with shoppers, ultimately driving sales and customer satisfaction. Additionally, space limitations in retail environments mean that retailers cannot stock every possible product, making it vital to curate a well-balanced assortment that fits within available shelf space while still appealing to the target market.

Other options focus on narrowed perspectives that don't capture the comprehensive nature of assortment planning. While profit margins, product variety, and supplier preferences are important considerations, they are not the sole focus or guiding principles in effective assortment planning, which should prioritize consumer needs and practical constraints first and foremost.