The degree of demand and price uncertainty has

Question

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The degree of demand and price uncertainty has a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry. When there is high demand uncertainty, firms may require more short-term warehousing space to respond quickly to changes in demand. On the other hand, when there is high price uncertainty, firms may require more long-term warehousing space to take advantage of price fluctuations. Therefore, it is important to consider the level of uncertainty when deciding on the appropriate mix of long- and short-term warehousing space.

The Degree of Demand and Price Uncertainty Has