The degree of demand and price uncertainty has
A)no effect on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.
B)a limited influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.
C)a minor influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.
D)a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.

Question

Quizplus · Accepted Answer

The degree of demand and price uncertainty can significantly affect a firm's demand for both long- and short-term warehousing space. In times of high uncertainty and variability, a firm may need to carry more short-term storage capacity to respond to sudden changes in demand or price fluctuations, while in periods of low volatility, a firm may prioritize long-term storage capacity to reduce costs and increase efficiency. Therefore, it is essential to consider the impact of demand and price uncertainty when determining the appropriate portfolio of warehousing space.

The Degree of Demand and Price Uncertainty Has