Generally, firms that are subject to high degrees of operating uncertainty, relatively short production cycles, or both tend to use a shorter planning horizon.

Question

Quizplus · Accepted Answer

This is true because in situations with high operating uncertainty or short production cycles, it can be difficult to accurately forecast and plan far into the future. Firms may need to adjust their plans more frequently and therefore use a shorter planning horizon to be more agile and responsive to changes in the market.

Generally, Firms That Are Subject to High Degrees of Operating