The Impact of Poor Communication and Inaccurate Forecasts Resonates Along

question 4

Multiple Choice

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the:

• A)Bullwhip effect
• B)Delphi method
• C)CPFR effect
• D)Mean deviation

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Definitions:

Negative Externalities

Costs incurred by third parties not involved in the transaction or decision-making process, typically resulting from production or consumption activities.

Positive Externalities

Benefits that occur to third parties as a result of an economic activity, which are not accounted for in the market price.

Perfect Knowledge

A theoretical scenario where all consumers and producers have complete and accurate information about prices and products in the market.

Inelastic Demand

When the quantity demanded of a good or service changes very little with a change in price, showing low sensitivity.