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Safety Stock Is Defined as The

Question 296

Multiple Choice

Safety stock is defined as the:


A) Minimum quantity for a replacement order.
B) Maximum level of inventory that exists when a replacement order is received.
C) Quantity specified as the reorder point when long delivery times exist.
D) Level of inventory that triggers a derived demand order when delivery time is involved.
E) Minimum level of inventory that a firm keeps on hand.

Correct Answer:

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