Uncertainty in Demand and Economic Factors Should Be Included in the Financial

question 77

Multiple Choice

Uncertainty in demand and economic factors should be included in the financial evaluation of supply chain design decisions because

• A)the exclusion of certainty may have a significant impact on this evaluation.
• B)the exclusion of uncertainty will not have a significant impact on this evaluation.
• C)the inclusion of certainty may have a significant impact on this evaluation.
• D)the inclusion of uncertainty may have a significant impact on this evaluation.

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Definitions:

Trend Analysis

Constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year.

Transitional Matrix

A mathematical matrix concerned with the probabilities of switching from one state to another in various processes or systems.

Human Resource Planning

The strategic process organizations use to forecast their future human resource needs and develop plans to ensure the right number and kind of people are available when needed.

Labor Surplus

A situation where the supply of labor exceeds the demand, often leading to unemployment or lower wages.