Demand forecast accuracy is important because underestimating demand leads to ________.
A)high inventory costs
B)lost sales
C)customer satisfaction
D)discount blowouts

Question

Quizplus · Accepted Answer

Underestimating demand leads to lost sales, which can have a negative impact on revenue and customer satisfaction. High inventory costs may be a result of overestimating demand, while discount blowouts may occur when inventory is overstocked and needs to be liquidated quickly.

Demand Forecast Accuracy Is Important Because Underestimating Demand Leads to ________