question archive Demand will always be uncertain, that is the nature of demand
Subject:AccountingPrice: Bought3
Demand will always be uncertain, that is the nature of demand." The only way to guarantee customer satisfaction is to make the operation sufficiently responsive to cope with demand, irrespective of any fluctuation'.
This second statement appears to suggest more organizational effort should be placed on ensuring the business is responsive to variations in demand, as this will then address the issue of forecast inaccuracies.
For example, maintaining high stock levels allows high levels of responsiveness and may negate the need for forecast accuracy. Discuss the implications of such a focus.
Investigate the situation for different products/services, industries, etc. Is the issue of responsiveness more relevant in some areas than in others?