Customers sharing of their planned future purchase quantities, actual sales data, or promotion and new product plans with their supplier can lead to?
A) Increased capacity
B) Increased customer wait time
C) Reduced forecast error and needed safety stock
D) Excessive product returns

Question

Quizplus · Accepted Answer

Sharing planned future purchase quantities, actual sales data, or promotion and new product plans with the supplier can reduce forecast errors and allow for better inventory planning, resulting in reduced safety stock needs. This can also lead to increased capacity, but that is not always the case. Increased customer wait time and excessive product returns are not likely outcomes of sharing this information.

Customers Sharing of Their Planned Future Purchase Quantities, Actual Sales