Safety Stock Is the Buffer Inventory Held as a Cushion

question 105

True/False

Safety stock is the buffer inventory held as a cushion against unexpected increases in demand or lead time, and unexpected unavailability of stock from suppliers.

---

Definitions:

Community College

A public institution providing higher education and lower-level tertiary education, granting certificates, diplomas, and associate degrees.

Price Discrimination

The strategy of selling the same product to different customers at different prices based on their willingness to pay, not differences in production costs.

Fourth of July

A national holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776.

Newspaper Coupon

a voucher printed in newspapers that offers a discount on a particular product or service.