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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?

Waterways are an attractive distribution system when speed is more important than cost.

The first step in devising an effective supply chain strategy is to consider the nature of the demand for your products.

Short-range forecasts tends to be more accurate than longer-range forecasts.

A major challenge in inventory management is to maintain a balance between inventory investment and customer service

Uncertainty is lower for aggregated forecasts. For example, in general, a manager can be more confident about the forecast of customer demand for “all toy cars” than a forecast for “yellow toy cars”.

The key difference between an EOQ inventory model where demand is known and one where demand is uncertain is in computing the reorder point.