The uncertainty of customer demand for a product is the
A) rate of strategic uncertainty.
B) demand uncertainty.
C) implied demand uncertainty.
D) average forecast error.
E) none of the above

Question

Quizplus · Accepted Answer

Demand uncertainty refers to the degree of unpredictability or variability of customer demand for a product. It is a key factor that affects a company's production planning and inventory management decisions. Option A, rate of strategic uncertainty, refers to the level of uncertainty regarding the success of a company's long-term strategy. Option C, implied demand uncertainty, is not a commonly used term in business. Option D, average forecast error, refers to the difference between actual and predicted results and is a measure of the accuracy of forecasting methods. Option E is too general and does not provide a specific answer.

The Uncertainty of Customer Demand for a Product Is the