A 30 Percent Reduction in Product and Service Variety Will

question 55

True/False

A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

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Definitions:

Anchoring

A cognitive bias where an individual relies too heavily on an initial piece of information (anchor) when making decisions.

Adjustment Heuristic

A rule of thumb where an initial estimate is adjusted based on additional information or analysis.

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, where inferences about other people and situations may be drawn in an illogical fashion.

Availability Heuristic

A decision-making heuristic in which our estimates of frequency or probability of events are based on how easy it is to find examples.