The Essence of Demand Management Is to Estimate and Manage

question 14

True/False

The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks.

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Definitions:

First Instinct Fallacy

The mistaken belief that an individual's initial answer to a question is more likely to be correct than any answer they might change it to upon further consideration.

False Consensus Effect

The tendency to overestimate the extent to which others share one's beliefs, attitudes, or behaviors.

False Consensus Effect

A cognitive bias whereby people overestimate the degree to which their beliefs, opinions, preferences, values, and habits are normal and typical of those of others.

False Uniqueness Effect

The tendency of people to underestimate the commonality of their abilities and desirable or successful behaviors.