La Belle Inc

question 50

Multiple Choice

La Belle Inc.introduced a new line of accessories for teenaged girls last season.Following its immense popularity with the targeted group,the company anticipated high sales this season.It ordered raw materials accordingly,and even ensured that they had sufficient inventory to meet excess demand,if any.However,the success of the new line turned out to be a fad,as the teens soon turned to other products offered by competing brands,and La Belle's sales declined.This forecasting error caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had already piled up in anticipation of good sales.This is an example of ________.

• A) the multiplier effect
• B) hindsight bias
• C) product recall
• D) the bullwhip effect
• E) safety stock planning

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Definitions:

Intervention

An action or process of intervening, typically aimed at producing a change or improvement.

Core Counseling Skills

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Open-Ended Questions

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Reflective Listening

A communication technique in which the listener acknowledges and restates what the speaker has said to ensure understanding and validation.