Safety Stock Exists for Which of the Following Reasons

question 24

Multiple Choice

Safety stock exists for which of the following reasons?

• A)To allow less expensive purchases by buying more.
• B)To allow for transportation time.
• C)To provide protection against the uncertainties of supply and demand.
• D)None of these.

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Definitions:

Business Transaction

An exchange between two or more parties that involves the buying, selling, or trading of goods, services, or information.

Subsidiary Business

A company that is completely or partially owned and controlled by another company, known as the parent company.

Company Intranet

A private network used by a company to securely share corporate information and computing resources with its employees.

External Communication

Communication that occurs between an organization and parties outside of it, such as customers, investors, and the public, often for marketing or public relations purposes.