In general, firms that are subject to a high degree of ________, relatively short production cycles, or both, tend to use shorter planning horizons.

Question

Quizplus · Accepted Answer

Firms facing operating uncertainty, such as changes in customer demand or supply chain disruptions, often use shorter planning horizons to adjust to changes more quickly. This is particularly true for firms with short production cycles, which may require frequent adjustments in response to market fluctuations. Financial certainty and profitability may also be factors in planning horizons, but they are not as closely related to the use of shorter planning cycles as operating uncertainty is. Financial planning is not directly related to the use of planning horizons.

In General, Firms That Are Subject to a High Degree