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“Innovative” products tend to have long life cycles of two years or more, predictable demand with low average demand forecast error, low profit margins, and low product variety.

The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

Firms often use multiple suppliers in different geographical regions for important components to reduce the risks of natural catastrophes.

In a supply chain, vertical integration requires the firm to become more specialized.

When using the low-cost strategy for supply chain management, a firm should use buffer stocks to ensure speedy supply.

While the prices that consumers pay are often inflexible, a significant number of final prices paid in business-to-business transactions are negotiated.

Forecasts are about predicting the future on the basis of what’s gone on in the past.

Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories.

A naïve forecast for September sales of a product would be equal to the forecast for August.

Using the ABC classification system for inventory, which of the following is a true statement?