Safety stock is needed to absorb ____.
A) changes in accounts receivables
B) cyclical changes
C) random fluctuations in sales
D) annual model changes

Question

Quizplus · Accepted Answer

Safety stock is used to buffer against unpredictable fluctuations in demand, which are often caused by random factors such as sudden changes in the market or unexpected consumer behavior. It is not used to absorb changes in accounts receivables, cyclical changes, or annual model changes, which are relatively predictable and can be managed through other inventory management strategies.

Safety Stock Is Needed to Absorb ____