Safety Stock Exists for Which of the Following Reasons

question 15

Multiple Choice

Safety stock exists for which of the following reasons?

• A)To allow less expensive purchases by buying more
• B)To allow for transportation time
• C)To provide protection against the uncertainties of supply and demand
• D)None of the above

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Definitions:

Money Order

A type of draft that may be purchased from banks, post offices, telegraph companies, and express companies as a substitute for a check.

Draft

A preliminary version of a piece of writing, document, or plan which is subject to further revision or editing.

Big Bank

A big bank refers to a large, multinational banking institution that offers a wide range of financial services, often with significant influence in economic policies and markets.

Forger

An individual who commits fraud by creating or altering a document with the intent to deceive.