The purpose of safety stock is to:
A) replace failed units with good ones.
B) eliminate the possibility of a stockout.
C) eliminate the likelihood of a stockout due to erroneous inventory tally.
D) control the likelihood of a stockout due to variable demand and/or lead time.
E) protect the firm from a sudden decrease in demand.
D
Business
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Opportunity cost is a key consideration when determining:
A. a company's tax rate. B. absolute advantage. C. comparative advantage.
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The secondary mortgage market does NOT deal in
a. primary mortgage market instruments. b. junior liens. c. issuing loans. d. mortgage-backed securities.
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