Why do most companies underforecast than overforecast? Cite a situation when overforecasting may be better.

Question:

Why do most companies “underforecast” than “overforecast”? Cite a situation when “overforecasting” may be better.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Service Systems Engineering And Management

ISBN: 978-0367781323

1st Edition

Authors: A. Ravi Ravindran ,Paul M. Griffin ,Vittaldas V. Prabhu

See More Books

Question Posted: Feb 27, 2024 03:10 AM

See More Questions

List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
What is the result of executing the following method? A. The declaration of name does not compile. B. The declaration of _number does not compile. C. The declaration of profit$$$ does not compile. D....
The Electronics Division of Apex Company reports the following results for 2014: Revenues $580,000 Operating expenses $520,000 Operating income $ 60,000 Operating assets $700,000 Apex Company has set...
Magnesium is a divalent metal. Its density is 1.74 10 3 kg/m 3 and its molar mass is 24.3 g/mol. Assuming that each magnesium atom contributes two conduction electrons, what should be the Hall...
In what areas have technological advances had their greatest effect on facilitating world trade and investment? L01
An airplane in flight is subject to an air resistance force proportional to the square of its speed v. But there is an additional resistive force because the airplane has wings. Air flowing over the...
Prover Star Trek Enterprises is a research based corporation that specializes in space exploration. Journalize the following transactions that relate to securities acquired by Star Trek Enterprises,...
Monthly sales data for this year for QuikSell Realty are given in Table 2.10. The company wants a forecast of sales for the first quarter of next year (months 13, 14, and 15). Compute the forecasts...
Name at least three practical uses of forecast errors.
For the following exercises, sketch the curve and include the orientation. x(t) = sec t |y(t) = tan t
Consider the situation you addressed in Problem and Exercise 3. Create numeric cost estimates for each of the costs you listed. Calculate the net present value and return on investment. Include a...
The output power $\dot{W}$ of a spinning shaft is a function of torque $T$ and angular velocity $\omega$. Use dimensional analysis to express the relationship between $\dot{W}, T$, and...
In groups of three, pick a local healthcare organization with which you are familiar. Conduct a SWOT analysis on the organization. After completing the SWOT analysis, use the template in exhibit 8.12...
The Dean Door Corporation (DDC) manufactures steel and aluminum exterior doors for commercial and residential applications. DDC landed a major contract as a supplier to Walker Homes, a builder of...
In Exercises 47 and 48, write a two-column proof. GIVENmWYZ = m/TWZ = 45 PROVE SWZ = ZXYW SW X Y N T
Reids personal residence is condemned on September 12, 2014, as part of a plan to add two lanes to the existing highway. His adjusted basis is $300,000. He receives condemnation proceeds of $340,000...
When is the indirect pattern appropriate, and what are the benefits of using it?
Bob Roman, the major owner of an S corporation, approaches you for some tax planning help. He would like to exchange some real estate in a like-kind transaction under 1031 for real estate that may...
Keystone, your tax consulting client, is considering an expansion program that would entail the construction of a new logistics center in State Q. List at least five questions you should ask in...
The trend in state income taxation is for states to adopt a version of the unitary theory of multijurisdictional taxation in their statutes and regulations. a. Explain why some states are attracted...
Sociology
I am unsure how to answer question e as there are two variable changes. In each of the following, you are given two options with selected parameters. In each case, assume the risk-free rate is 6% and...
On January 1, Interworks paid a contractor to construct a new cell tower at a cost of $850,000. The tower had an estimated useful life of ten years and a salvage value of $100,000. Interworks...

Why do most companies underforecast than overforecast? Cite a situation when overforecasting may be better.

Question:

Step by Step Answer:

Most companies tend to underforecast rather than overforecast for several reasons Risk Aversion Companies often prefer to err on the side of caution t...View the full answer

Service Systems Engineering And Management

Students also viewed these Business questions