Supply chain managers are able to increase their forecast accuracy as lead times decrease,which allows them to better match supply with demand and increase supply chain profitability.

Question

Quizplus · Accepted Answer

When lead times decrease, supply chain managers have more exact information to work with and can adjust their production and logistics strategies accordingly. This leads to a better alignment of supply with anticipated demand, reducing the risk of over- or understocking inventory levels. This results in cost savings and increased profitability for the supply chain. Therefore, the statement is true.

Supply Chain Managers Are Able to Increase Their Forecast Accuracy