In: Operations Management
In general, which of the following attribute combinations makes a product the most difficult to manage from a supply chain perspective?
Long lead times and constant, predictable demand |
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Short lead times and unpredictable demand |
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Short lead times and constant, predictable demand |
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Long lead times and unpredictable demand |
Answer is: Long lead times and unpredictable demand
Explaantion: With unpredictable demand we cant have a set pattern about the forecasting. With such unstable demand, if lead time is long, either we wont be able to fulfil the demand staying with long backorders and stockouts, else we will have a large ending inventory which will cost more on the holding cost. Hence this is most difficult to manage.
Why other options are incorrect:
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