Question

What do you expect the level of implied demand uncertainty to be for jasmine rice produced by Thailand at a supermarket? Explain your answer with reference to Fisher’s model.

Answer 1

Answer:

Implied demand uncertainly resulting uncertainty for the supply chain given the portion of the demand, the supply chain must handle & attributes the customer desires.

Explanation:

Implied demand uncertainly resulting uncertainty for the supply chain given the portion of the demand, the supply chain must handle & attributes the customer desires.

1. It is related to customer needs & product attributes.
2. The level of implied demand uncertainly of jasmine rice is low, because the demand& supply of jasmine rice is predictable
3. The jasmine rice has low contribute margin, accurate demand forecasts, low stock out rates and virtually no markdown.
4. These characteristics match well with Fisher’s chart of characteristics for product with highly certain demand.