Ignoring uncertainty in demand encourages a greater use of
A)expensive but flexible transportation modes.
B)inexpensive and inflexible transportation modes.
C)inexpensive and flexible transportation modes.
D)expensive and inflexible transportation modes.

Question

Quizplus · Accepted Answer

Ignoring uncertainty in demand leads to the assumption of high demand, which in turn can result in overinvestment in expensive transportation modes such as air freight or express delivery. However, a more cost-effective approach would be using inexpensive and inflexible transportation modes such as sea or rail transport. The inflexibility of these modes can be compensated by keeping safety stocks of inventory or using buffer inventory strategies.

Ignoring Uncertainty in Demand Encourages a Greater Use of