If a Large Diversified Company Has Many Different Divisions, Each

question 68

Multiple Choice

If a large diversified company has many different divisions, each competing for capital expenditure funds, which of the following statements would be MOST relevant?

• A) The division with the lowest assets should have priority for investment funds to allow that division to grow to the scale of the other divisions.
• B) The division with the highest operating income should take priority, because it will likely continue to earn the highest operating income for the company.
• C) The division with the highest ROI should take priority because it shows that it can produce the highest return per invested dollar.
• D) The division with the highest growth rate in assets should be given additional funding.

Identify different types of errors in demand forecasting and how to calculate forecast error.

Understand the similarities and differences between CPFR (Collaborative Planning, Forecasting, and Replenishment) and S&OP (Sales and Operations Planning) processes.

Identify logistical problems that can arise from misalignment between supply and demand and discuss methods to mitigate these effects.

Understand and differentiate between various forecast error measures.

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Definitions:

Freudian Component

Elements of Sigmund Freud's psychoanalytic theory which include the id, ego, and superego, responsible for different aspects of human personality and behavior.

Ego

A component of Sigmund Freud's model of the psyche that mediates between the demands of the id, the superego, and the external world, playing a crucial role in decision making and reality testing.

Unconscious

Refers to the part of the mind that contains thoughts, memories, and desires not within the sphere of current awareness but that nonetheless influence behavior.

Preconscious

A part of the mind that contains thoughts, feelings, and memories that are not currently in conscious awareness but can easily be brought to consciousness.