Safety Stock Is Kept in Order To

question 15

Multiple Choice

Safety stock is kept in order to:

• A)Guard against defective products.
• B)Prevent losses created by a stockout
• C)Prevent people from being injured by dangerous inventory
• D)Help identify the reorder point

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Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of involuntary unemployment.

Full Production

A state of economic production in which all available resources (labor, capital, etc.) are being used efficiently, leading to the maximum possible output.

Capacity Utilization

The percentage of a country's production capacity that is actually being used over a certain period of time, indicating the overall economic activity and efficiency.

Labor Unemployment

A situation where individuals who are willing and able to work are unable to find employment, often measured by the unemployment rate.