Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

Name: Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Safety inventory is held as a buffer against unexpected increases in demand. It is additional inventory held over and above the expected demand to ensure that demand can be met even if it is higher than what was forecasted. Therefore, the statement is true.

Safety Inventory Is Defined as Inventory Held to Satisfy Demand