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4. Select increase or decrease or if neither, explain why. a. Newly installed demand planning software has enabled a company to improve its forecast accuracy.
4. Select increase or decrease or if neither, explain why. a. Newly installed demand planning software has enabled a company to improve its forecast accuracy. As a result, it expects its cost of overstocks to decrease/increase - It will decrease due to more accurate order sizes that meet demand and not have too many leftover products. b. A corrugated box company would throw away damaged boxes that were created during a production run. They found a recycler that was willing to pay them for the damaged pieces. By getting paid to recycle the damaged pieces, the box company decreased/increased its cost of understocks. - c. Placing multiple orders for Halloween costumes during the period leading up to Halloween enables Walmart to decrease/increase its overstocks. d. For a continuously stocked product, when the cost of an overstock increases, the CSL for a backlogged item decreases/increases
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