Safety Stock Is

question 36

Multiple Choice

Safety stock is

• A)the cost of holding inventory.
• B)a non-value activity and should never be considered.
• C)not considered when calculating the reorder point.
• D)extra inventory carried to serve as insurance against fluctuations in demand.

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Definitions:

Natural Selection

A process by which species evolve over time as individuals with traits better suited to their environment are more likely to survive and reproduce.

Survival

The ability of an organism to continue existing and reproducing under changing environmental conditions.

Traits

Enduring characteristics or qualities that define an individual's personality.

Offspring

The biological children or progeny of an organism, resulting from reproduction.