Customers Sharing of Their Planned Future Purchase Quantities, Actual Sales

question 18

Multiple Choice

Customers sharing of their planned future purchase quantities, actual sales data, or promotion and new product plans with their supplier can lead to?

• A) Increased capacity
• B) Increased customer wait time
• C) Reduced forecast error and needed safety stock
• D) Excessive product returns

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Definitions:

Product Development

The process of bringing a new product or service to the market, from initial concept through design, prototype, testing, and finally, launch.

Market Penetration

A strategy aiming to increase market share within an existing market segment by using methods such as pricing adjustments, increased promotion, and product improvements.

Market Development

A growth strategy that involves the introduction of existing products into new markets to increase sales and market share.

Diversification

A strategy that involves entering into new markets or investing in different types of assets to reduce risk and increase potential returns.