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Excess inventory accumulated because of an incorrect estimate. Which function needs improvement?

Answer and explanation

Correct answer: Demand forecasting

Demand forecasting estimates how much customers are likely to buy in a future period. If the estimate is too high, the business may produce or order more stock than needed, causing storage costs and possible waste. Motivation, customer service, and recruitment may affect operations, but they do not directly correct an inaccurate demand estimate.

Related tags

Demand ForecastingInventory PlanningStock ManagementQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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