All else equal, a firm that holds safety stocks of inventory will have a lower level of average inventory than a firm that does not.

Name: All else equal, a firm that holds safety stocks of inventory will have a lower level of average inventory than a firm that does not.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Holding safety stocks of inventory is a strategy to buffer against uncertainties in demand or supply, leading to higher levels of average inventory compared to a firm that does not maintain such stocks.

All Else Equal, a Firm That Holds Safety Stocks of Inventory