A Company Distributes Products Through a Multitiered Distribution Network

question 394

Multiple Choice

A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to:

• A) extend forecast horizon.
• B) increase distribution safety stock targets.
• C) increase manufacturing throughput.
• D) increase demand visibility with all partners.

---

Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a profit or loss.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholder's equity at a specific point in time.

Investing Activities

Investing activities involve the purchase and sale of long-term assets and other investments, not considered as cash equivalents by a company.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories.