Safety stock acts as a buffer for the lack of flexibility in the supply chain.

Question

Quizplus · Accepted Answer

Safety stock is an additional inventory that is kept as a buffer to ensure that there is always enough stock available to meet customer demand, even if there are unexpected delays or fluctuations in demand. This acts as a buffer for the lack of flexibility in the supply chain, as it allows companies to absorb these unexpected fluctuations without disrupting normal operations.

Safety Stock Acts as a Buffer for the Lack of Flexibility