The downside of poor forecasting includes all of the following except _____.
a. higher inventory volumes
b. poor customer service as inventory is misallocated across locations and products
c. higher inventory carrying charges
d. excessive safety stock levels
e. decreased customer service costs
Question 2
Why does the selection of channel members pose a peculiar, paradoxical challenge for the franchisor?
a. Because franchisors want franchisees who are highly motivated but not entrepreneurial.
b. Because franchisors want franchisees who are self-motivated, entrepreneurial but willing to accept direction from the franchisor.
c. Because franchisors want franchisees who are extremely independent and creative.
d. Because franchisors want franchisees who are able and willing to modify the fran-chise model to adapt to local consumer demand.
e. Because franchisors want franchisees who can conduct business without direction.
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