Supply Chain Managers Are Able to Increase Their Forecast Accuracy

question 25

True/False

Supply chain managers are able to increase their forecast accuracy as lead times decrease,which allows them to better match supply with demand and increase supply chain profitability.

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Definitions:

Target Cost

The market-driven price that a product must meet or go below, after subtracting the desired profit margin, to remain competitive.

Competitor's Product

A product or service offered by a business rival in the same market, directly competing with one's own product or service offering.

Useful Life

The estimated duration a fixed asset is expected to be economically useful to an entity.

Operating Cost

Expenses associated with the day-to-day operations of a business, including rent, utilities, and payroll.