Question

Please check all the negative outcomes that inaccurate forecasts may create (mark all that apply): A....

Please check all the negative outcomes that inaccurate forecasts may create (mark all that apply):

A. High inventory levels

B. Increased customer service levels

C. Reduced total supply chain costs

D. Lower transportation costs

E. Lost sales

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Answer #1

Answer: A. High inventory levels , E. Lost sales

Explanation: The negative outcomes are high inventory levels which increases the inventory cost by increase in storage and holding cost of inventory. Lost sales happen when the inventory forecast lesser demand than normal. This leads to lost sales.

The other options such as increased customer service levels, reduced total supply chain cost and lower transportation costs mentions the positive outcomes of inaccurate forecasts.

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