________ may reduce overall profits for a firm if a single product contributes the majority of the demand.
A)Shortened forecasting window
B)Quick response
C)Postponement
D)Tailored sourcing

Question

Quizplus · Accepted Answer

Postponement involves delaying the finalization of a product until the actual demand is identified. In the case where a single product contributes the majority of the demand, if the firm fails to accurately forecast the demand, they could end up producing an excess of the product, resulting in inventory carrying costs and potentially decreasing profits. Utilizing postponement can help mitigate this risk by delaying the production of the product until demand is identified, reducing the likelihood of excess inventory and ultimately increasing overall profits.

________ May Reduce Overall Profits for a Firm If a Single