The Least Potent Forces for Industry Change Are Technology and Innovation

question 16

True/False

The least potent forces for industry change are technology and innovation.

Comprehend the different types of demand fluctuations and their causes.

Recognize the role of collaborative planning, forecasting, and replenishment (CPFR) in supply chain management.

Understand the essence of mean absolute deviation (MAD) and bias as metrics of forecast accuracy.

Identify different types of errors in demand forecasting and how to calculate forecast error.

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Definitions:

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where the average cost per unit decreases as production scales up.

Diseconomies of Scale

The phenomenon where a company's production costs increase as it produces more, resulting in a decrease in efficiency.

Output Units

Quantitative measures of production, representing the number of units of goods or services produced.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.