The Purpose of Safety Stock Is To

question 15

Multiple Choice

The purpose of safety stock is to:

• A) replace failed units with good ones.
• B) eliminate the possibility of a stockout.
• C) eliminate the likelihood of a stockout due to erroneous inventory tally.
• D) control the likelihood of a stockout due to variable demand and/or lead time.
• E) protect the firm from a sudden decrease in demand.

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Definitions:

Dimension Origin

The reference point or line from which dimensions are measured, serving as the starting point for the size and location of geometric features.

Positional Tolerancing

A type of geometric tolerancing that controls the variation in the position of features without affecting their size or shape.

General Tolerance

The allowable amount of variation in any dimension within a drawing or part that is not specifically called out by a dimension or note.

Basic Dimensions

Theoretically exact measurements specified on drawings, from which tolerances are applied to define allowable variation.