The Fact That Each Stage in a Supply Chain Forecasts

question 39

Multiple Choice

The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in

• A) forecasts based on actual consumer demand patterns.
• B) a reduction in demand as we move up the supply chain from the retailer to the manufacturer.
• C) a magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer.
• D) an increase in forecast accuracy.
• E) none of the above

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Definitions:

Competitive Price-searcher

A market participant who actively seeks out the best price for goods or services among various competitors.

Product Variety

Product variety refers to the assortment of different goods and services that a company offers to meet varying customer needs and preferences.

Higher Prices

A scenario where the cost of goods or services rises, which can be due to increased demand, reduced supply, or inflation.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain exceeding the opportunity costs.