Safety Stock Is Calculated as the Difference Between the Maximum

question 28

Multiple Choice

Safety stock is calculated as the difference between the maximum daily usage and the:

• A) average daily rate of usage
• B) average daily rate of usage multiplied by the number of days lead time
• C) number of days of lead time
• D) average number of days of lead time multiplied by the rate of usage

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Definitions:

Cut Expenses

The act of reducing spending or costs in order to save money or meet a budget.

Living On A Budget

The practice of managing income and expenses with a planned, structured approach to ensure financial sustainability.

Challenge

A task or situation that requires a person to engage in effort and skill to overcome difficulties or achieve a goal.

Spending Philosophy

An individual's approach or principles guiding how they allocate their financial resources.