The Purpose of Safety Stock Is to

question 43

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 the variability of demand during lead time
• E) protect the firm from a sudden decrease in demand

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Definitions:

Clusters

Groups of similar items, people, or events that are positioned closely together, often implying some shared characteristics.

Inflexible

Lacking flexibility; unable to change or adapt to new situations or perspectives.

Maladaptive

Behaviors or thoughts that are counterproductive and interfere with an individual’s ability to effectively cope with stress, challenges, or goals.

Impaired Functioning

A reduction in the ability to perform daily tasks and activities effectively, often due to physical, mental, or emotional disabilities or conditions.