Which of the following statements is false about demand management?
A)Effective demand planning and management can mitigate the bullwhip effect.
B)Accurate forecasts of product quantities can facilitate implementation of just-in-time production systems.
C)Efficient demand planning and forecasts can reduce the operational costs.
D)Accurate demand planning can result in excess inventories and unwanted capacity.

Question

Quizplus · Accepted Answer

Accurate demand planning aims to match demand and supply as closely as possible, but it does not mean overestimating demand to have excess inventories and unwanted capacity. This would result in increased costs and lower profitability. Thus, option D is false.

Which of the Following Statements Is False About Demand Management