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.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but instead retained by the company to be reinvested in its core business or to pay debt.

Net Income

The total profit of a company, after all expenses and taxes have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Common Stock

Equity ownership in a corporation, offering voting rights and dividends to shareholders, subordinate to preferred stock.