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Excess inventory accumulated because of an incorrect estimate. Which function should the entrepreneur improve?

Answer and explanation

Correct answer: Demand forecasting

Demand forecasting estimates how much customers are likely to buy during a future period. If the estimate is too high, the business may produce or purchase more stock than it can sell, increasing storage costs and waste. Improving forecasting can make inventory decisions more accurate; recruitment, complaints, and motivation do not address the mistaken demand estimate.

Related tags

Demand-ForecastingInventory-PlanningQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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