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

Question

Quizplus · Accepted Answer

Underestimating demand leads to lost sales, as the company will not have enough product to meet the demand of its customers. It is important for companies to accurately forecast demand to ensure they have sufficient inventory to meet the needs of their customers, thereby maximizing sales and revenue.

Demand Forecast Accuracy Is Important Because Underestimating Demand Leads to ________