Which of the Following Situations Requires the Largest Amount of Safety

question 51

Multiple Choice

Which of the following situations requires the largest amount of safety stock based on demand variability and replenishment lead time?

• A) Low variability, short replenishment lead time.
• B) Low variability, long replenishment lead time.
• C) High variability, short replenishment lead time.
• D) High variability, long replenishment lead time.

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Definitions:

Financial Resources

Monetary assets that are available and can be used to facilitate transactions or investments by individuals or organizations.

Focused Strategy

A business approach that targets a particular market niche or demographic with tailored products or services.

Customer Niche

A focused, targetable portion of a market by which specific products or services are marketed to meet the unique demands of its audience.

Broader Market

Refers to a wide and diverse range of buyers and sellers in an extensive market beyond niche or specific industry segments.