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.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter23: Managing Vertical Relationships

Section: Chapter Questions

Problem 5MC

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