Which of the Following Statements Is False About Global Demand

question 12

Multiple Choice

Which of the following statements is false about global demand volatility?

• A)When a company cancels its order during periods of demand downturn,the suppliers are left with inventories for which demand no longer exists.
• B)When the company increases its order during periods of demand upswings,it takes a long time to get the goods through the supply chain due to longer lead times.
• C)When demand for a product softens,companies can easily cancel orders with distant suppliers as compared to local suppliers.
• D)When demand for a product increases,companies can place new orders with local suppliers with more assurance that it will be delivered on time.

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