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Most Franchisors Are Highly Selective When Granting a Franchise,which Helps

question 49

True/False

Most franchisors are highly selective when granting a franchise,which helps explain the lower failure rate.


Definitions:

Forecasting Errors

Discrepancies between predicted and actual demand, often leading to inventory mismanagement.

Safety Capacity

The extra capacity created within a system to accommodate unexpected demand or to compensate for potential system failures.

Aggregate Decisions

Aggregate Decisions are strategic choices made at the corporate or strategic business unit level, focusing on overall capacity, investment, and long-term resource allocation.

SKU-Level Decisions

involves making strategic choices about product stocking, pricing, promotions, and inventory management at the specific stock keeping unit (SKU) level.

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