Before Completing the Work Within Chapter 6, Check Your Data

question 19

Multiple Choice

Before completing the work within Chapter 6, check your data with the following report:

• A)December 1 Trial Balance.
• B)December 31 Trial Balance.
• C)November 30 P&L.
• D)November 1 Balance Sheet.
• E)None of these.

Understand the role and importance of safety inventory in the supply chain.

Grasp the trade-offs between holding inventory and service levels.

Describe the impact of demand variability on safety inventory.

Explain the relationship between inventory placement in the supply chain and inventory costs.