The Purpose of Safety Stock Is To

question 15

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 variable demand and/or lead time.
• E) protect the firm from a sudden decrease in demand.

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Definitions:

Hellenistic

The term given to the art and culture of the roughly three centuries between the death of Alexander the Great in 323 BC and the death of Queen Cleopatra in 30 BC, when Egypt became a Roman province.

Stagelike Surface

In art, refers to a composition where the foreground acts as a stage for the subjects, creating a theatrical effect with depth and perspective.

Maestà Altarpiece

A term usually associated with a specific style of Italian painting or sculpture depicting the Virgin Mary enthroned and surrounded by a host of angels and saints.

Andrea Pisano

An Italian sculptor and architect from the 14th century, best known for his work on the doors of the Florence Baptistery and contributions to Gothic art.