Which of the Following Statements Is Best

question 7

Multiple Choice

Which of the following statements is best?

• A) safety stock depends on the service level desired
• B) safety stock depends on the length of the lead time
• C) safety stock depends on the variation of demand during the lead time
• D) all of the above are correct
• E) none of the above is correct

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Definitions:

Sales Forecast

An estimation of the expected sales for a particular period in the future, based on historical data, market analysis, and other factors.

Supply Chain

The interconnected network of entities, including suppliers, manufacturers, and distributors, involved in producing and delivering a product or service to the end consumer.

Upstream

In the context of supply chain management, it refers to the initial stages involving the sourcing of raw materials and the production processes leading to the final product.

Downstream

The stage in the production process or supply chain that occurs after a particular point, usually closer to the end-user or consumer.