What is implied demand uncertainty on a supply chain?
Implied demand uncertainty, is the resulting uncertainty for only the portion of the demand that the supply chain plans to satisfy based on the attributes the customer desires. A new cell phone has high implied demand uncertainty. Apple has more demand uncertainty than the local store.
2. Forecasting is more accurate when demand has less uncertainty.
Which of the following is not a characteristic of customer demand correlated with implied uncertainty?
Which of the following is not a characteristic of customer demand correlated with implied uncertainty? E) None of the above are correlated with implied uncertainty. Which of the following is not a supply chain capability that will impact supply uncertainty?
Strategic Fit may be defined as matching resources and capabilities but in Procurement it means requiring that both the competitive and supply chain strategies of a company have aligned goals. To provide the highest level of service as a procurement organization, strategic fit must be achieved.21-Sept-2020
How is implied demand uncertainty affected?
Increased implied demand uncertainty leads to increased difficulty in matching supply with demand. For a given product, this dynamic can lead to either a stockout or an oversupply situation. Increased implied demand uncertainty thus leads to both higher oversupply and a higher stockout rate.
ANS:Implied demand uncertainty is the uncertainty in meeting a portion of customerdemand and it is the uncertainty the supply chain faces. The implied uncertainty varies withthe following factors:-ï‚·When the demand product's sales projection is majorly based on the customer'sdesire to buy that product.
How does uncertainty affect inventory management?
Uncertainty is relevant in inventory management because uncertainty makes it difficult for businesses to maintain the IS ratio at its optimal level. Bechter and Pollock (1980) pointed out that uncertainty in sales affects the IS ratio because businesses cannot fully control sales.
The Nordstrom supply chain must be highly responsive in the areas of handling highly innovative fashion products, customer response, and service level; they are effective in supplying well-heeled customers with merchandise and their return policy is legendary in the Pacific Northwest.
How do you deal with demand uncertainty?
Here are five short-term actions to improve your demand variability management plans in this time of uncertainty:
Answer is "Longer Product Lifecycles"
Which of the following is false innovative products have high uncertainty in demand?
Ans. False. A new product developed will have high supply uncertainty because the design and production processes will not be fully developed.03-Apr-2022
1. Improving Efficiency. One of the most crucial objectives of Supply Chain Management is efficiency.
What is meaning of efficient and responsive supply chain?
Supply chain efficiency requires speed, and large, uniform orders. Responsive demands a slower pace, and, sometimes, customized orders. But they both serve the same end goal, and both are equally important.28-Mar-2022
Manufacturers that are making investments in procurement/Supply Chain programs, linking corporate strategy with Supply Chain strategy, are increasing revenue, generating more profit, reducing costs, identifying and mitigating risks better, reducing volatility and unpredictability, and generating shareholder value 30-Sept-2016
What is supply chain responsiveness?
Supply chain responsiveness is described as how the supply chain can be prompt and the extent to which it addresses the changing needs of customers with regard to their demand as well as respond to other changes in the dynamic business environment (Gunnasekeran et al., 2008; Danese et al., 2013).16-Feb-2021
In terms of supply chains, uncertainty means changes in fulfillment and profitability caused by unpredictable events and in how difficult it is to make decisions when there is a lack of unambiguousness in the supply chain, meaning we have no way of knowing the status and impact of the actions we may take.14-Jan-2022
How do supply chains deal with uncertainty?
Preparing Global Supply Chains Against Uncertainty
Supply chain uncertainty refers to the change of the balance and profitability of the supply chain caused by potential and unpredictable events, which requires a response to re-establish the balance. An event can be an unexpected order, late delivery from a supplier or a breakdown of critical production equipment.12-Jul-2018
What is strategic fit in supply chain management?
Strategic fit means that both the supply chain and competitive strategies must have a common goal. It refers to consistency between the competitive strategy of meeting the needs and demand of customers and the strategy in responding efficiently within its supply chain capabilities.
Supply chain capability is about the capability of delivering the product based on strategic and operational supply chain process platforms such as purchasing, production and logistics processes.
What are the different decisions taken under supply chain planning?
There are four major decision areas in supply chain management: 1) location, 2) production, 3) inventory, and 4) transportation (distribution), and there are both strategic and operational elements in each of these decision areas.22-May-1995
What is implied demand uncertainty on a supply chain?