One Type of Demand Fluctuation Is Caused by Random Variation

question 12

Multiple Choice

One type of demand fluctuation is caused by random variation.What is random variation?

• A) errors in inventory management
• B) errors not caught by using exponential smoothing
• C) demand that cannot normally be anticipated
• D) failure to properly execute the SO&P process plan

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Definitions:

Spontaneous

Occurring without apparent external cause; arising naturally and unexpectedly.

Technology

The application of scientific knowledge for practical purposes, especially in industry, including the invention and use of technical means and their interrelation with life, society, and the environment.

Political Biases

Preconceived notions or predispositions toward specific political parties, ideologies, or policy decisions, often resulting in a lack of impartial judgment.

Sociologist

A social scientist who studies the behaviors, structures, and functions of societies and social groups.