Inaccurate information can cause minor fluctuations in demand for a product to be amplified as one moves further back in the supply chain.

Question

Quizplus · Accepted Answer

Inaccurate information can cause misunderstandings and misjudgments in the supply chain, which can lead to larger fluctuations in demand as one moves further back in the supply chain. The further back in the chain, the longer lead times become, and any changes in demand become more pronounced. This can cause inventory imbalances, lost sales, and ultimately affect the bottom line.

Inaccurate Information Can Cause Minor Fluctuations in Demand for a Product