Which of the following statements regarding managing demand uncertainty is FALSE: A Shortening the lead time of raw material acquisition can lower the cost of demand uncertainty. B To reduce the cost of demand uncertainty, a sufficiently large minimum order quantity at an early production stage is preferred. C Obtaining market information earlier leads to more reactive capacity. D Under the postponement strategy, the effect of product pooling is stronger when demands for customized products are more negatively correlated.
Which of the following statements regarding managing demand uncertainty is FALSE: A Shortening the lead time of raw material acquisition can lower the cost of demand uncertainty. B To reduce the cost of demand uncertainty, a sufficiently large minimum order quantity at an early production stage is preferred. C Obtaining market information earlier leads to more reactive capacity. D Under the postponement strategy, the effect of product pooling is stronger when demands for customized products are more negatively correlated.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following statements regarding managing demand uncertainty is FALSE:
A Shortening the lead time of raw material acquisition can lower the cost of demand uncertainty.
B To reduce the cost of demand uncertainty, a sufficiently large minimum order quantity at an early production stage is preferred.
C Obtaining market information earlier leads to more reactive capacity.
D Under the postponement strategy, the effect of product pooling is stronger when demands for customized products are more negatively correlated.
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