Ch. 3 assigment

Ch. 3 assigment - John Latus Professor Saffarian MGMT 3413...

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John Latus Professor Saffarian MGMT 3413 1. What are some of the consequences of poor forecasts? Explain . Overly optimistic errors can lead Retailers into over ordering products, resulting in bloated inventories. When that happens there is pressure to move the excess merchandise. Customers are delighted by these markdowns, retailers profits generally suffer. Furthermore retailers will naturally cut back on new orders while they work off their inventories creating a ripple effect that hits the entire supply chain from shippers, to producers, to suppliers of raw materials. 2. List the specific weaknesses of each of these approaches to developing a forecast . Consumer Surveys: This type of survey has a drawback in that it takes a great deal of knowledge and skill to construct, administer it, and correctly interpret the results for valid information. This survey can be expensive and time-consuming. In addition in under the best of conditions, surveys of the general public must contend with irrational behavior
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Ch. 3 assigment - John Latus Professor Saffarian MGMT 3413...

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