Safety Stock Inventory Is an Additional Planned On-Hand Inventory That

question 82

True/False

Safety stock inventory is an additional planned on-hand inventory that acts as a buffer to reduce the risk of a stockout.

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Definitions:

M/D/1

M/D/1 is a queueing model designation indicating a system with a Poisson arrival process (M), deterministic service times (D), a single server (1), and exponential service times.

Constant Service Time

A situation where the time required to serve a customer or complete a process is the same each time, allowing for predictable scheduling and planning.

Units Arrive

The process of inventory or goods being delivered or reaching a specified location within a supply chain.

M/M/1

A model in queueing theory representing a system with a single server, where arrivals and service times follow an exponential distribution.