Asked by Rachael Petersen on May 20, 2024
Verified
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.
Supply Chain
The entire system comprising people, organizations, resources, processes, and technology responsible for bringing a product from its raw material state, through manufacturing, to its final delivery to the consumer.
Demand Forecasts
are predictions about future consumer demand for products or services, based on historical data, market trends, and analysis, used for planning purposes.
Consumer Demand
Consumer demand refers to the desire and ability of purchasers to acquire goods or services at a given price.
- Understand the mechanisms of demand forecast amplification and its consequences on supply chain performance.
Verified Answer
Learning Objectives
- Understand the mechanisms of demand forecast amplification and its consequences on supply chain performance.
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