When Safety Stock Is Deemed Absolutely Necessary, the Usual Policy

question 80

Multiple Choice

When safety stock is deemed absolutely necessary, the usual policy is to build it into which category of the MRP logic?

• A) Gross Requirements
• B) Scheduled Receipts
• C) Projected On Hand
• D) Net Requirements
• E) Planned Order Receipts

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Definitions:

Sales Stipend

A fixed sum of money paid to sales employees in addition to commissions to cover expenses or as part of their total compensation.

Security Income

Usually refers to income derived from investments, such as dividends or interest, but can also refer to guaranteed income sources like pensions or social security benefits.

Straight Commission Plan

A compensation structure where an employee's earnings are derived entirely from commissions made from the sales they generate.

Percentage Commission

A method of compensation where an employee or agent is paid a percentage of the sales they generate or the deals they close.