Supply Chain Management

Category - Strategy Alignment

Which of the following are the impacts of customer needs on implied demand uncertainty?
  1. An increase in the range of quantity required.
  2. A decrease in lead-time.
  3. An increased variety of products.
  4. All of the above.
Explanation
Answer: D - Implied demand uncertainty is often correlated with other characteristics of demand which result in an impact on customer needs. The range of quantity required increases because a wider range of quantity required implies greater variance in demand, lead time decreases because there is less time in which to react to orders, and the variety of products required increases because demand per product becomes more disaggregated.
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