Which of the following is most directly influenced by inaccuracies in forecasting?

The planned finished goods inventory level in a Make-to-Stock (MTS) environment is most directly influenced by inaccuracies in forecasting because MTS relies heavily on the demand forecasts to determine how much inventory should be produced. In this system, production is based on anticipated demand, and any inaccuracies in the forecast can lead to either excess inventory, which incurs additional holding costs, or stockouts, which can result in lost sales and dissatisfied customers.

Successfully managing finished goods inventory requires accurate demand forecasting to align production and inventory levels with customer needs. If the forecast is overly optimistic, production may exceed demand, leading to excess finished goods. Conversely, if the forecast is too conservative, it may result in insufficient inventory to meet actual customer demand.

The other options, while they might be influenced by forecasting in an indirect manner, do not experience the same direct relationship as the planned finished goods inventory level in an MTS environment. The established planning time fence focuses on the scheduling and adjustment of production orders, safety stock levels deal with variability in demand and supply rather than direct forecast accuracy, and leading indicators are broader indicators of economic or market trends rather than specific inventory levels.