La Belle Inc

question 92

Multiple Choice

La Belle Inc.introduced a new line of accessories for teenage girls the last season.Following its immense popularity with the targeted group,the company anticipated high sales in the current season and ordered raw materials accordingly..However,the success of the new line turned out to be a fad as the teens soon turned to other products offered by competing brands and La Belle's sales declined.This forecasting error caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had already piled up in anticipation of good sales.This is an example of ________.

• A) the multiplier effect
• B) hindsight bias
• C) product recall
• D) the bullwhip effect
• E) safety stock planning

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Definitions:

Advertising Medium

A channel or tool used to convey promotional messages to target audiences, such as television, radio, or online platforms.

Verizon

An American multinational telecommunications conglomerate and one of the largest wireless carriers in the United States.

Larger Companies

Corporations or businesses that have a significant scope in terms of operations, revenue, or number of employees, typically having a broad influence in their respective industries.

Alternative Media Outlets

Media sources that provide information outside of mainstream or conventional channels, often focusing on perspectives or topics not covered by major outlets.