The Fact That Each Stage in a Supply Chain Forecasts

question 46

Multiple Choice

The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in

• A)forecasts based on actual consumer demand patterns.
• B)a reduction in demand as we move up the supply chain from the retailer to the manufacturer.
• C)a magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer.
• D)an increase in forecast accuracy.

Calculate the impact of changes in variable costs, fixed costs, and sales volume on net operating income.

Calculate the effect of changing selling prices and advertising expenses on net operating income.

Understand the concept of margin of safety and how it is calculated.

Calculate the net operating income based on given financial data and changes in business strategy.

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Definitions:

Inventory

The total value of a company's goods that are ready for sale, in the process of being produced, or used as raw materials.

Use of Cash

Refers to how a business or individual utilizes available cash resources, including operations, investments, and financing activities.

Inventory Holdings

Refers to the quantity and value of a company's stock of goods that are held awaiting sale.

Cash Manager

A professional responsible for managing a company's cash inflows and outflows, ensuring sufficient liquidity for operations.