inaccurate can lead to excess and/or shortages throughout the organization and the supply chain.

Question

07-09-2022
Business

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inaccurate can lead to excess and/or shortages throughout the organization and the supply chain.

Sagot :

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AnnuG AnnuG · Answer 1 · 2022-09-19T23:33:01-04:00

Inaccurate information can lead to excess or shortage throughout the organization and the supply chain as minor fluctuations in forecasting can results in shortage or excess inventory for the distributors, manufacturers and suppliers.

Inventory should not be excess and not have shortage too because excess creates cost for the organization such as cost of storing, cost of carrying whereas shortage cannot fulfil the demand of the customers which results in decrease in company's goodwill.

Therefore supply chain management should be adequate which works effectively and efficiently.

In the earlier times, people cannot predict the correct information which results in fluctuations but in today's time with the help of technology, internet accurate information can be collected and communicated to the respective users.

To know more about supply chain management:

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