Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping
A) short order lead times.
B) just-in-time inventory.
C) a controlled usage rate.
D) safety stock.
E) excessive inventory.

Question

Quizplus · Accepted Answer

Eric is keeping safety stock, which is extra inventory kept to guard against stockouts during periods of high demand or uncertainty. This is a common practice in inventory management to ensure that customer demand can be met without disruption.

Eric Is Concerned About Not Having Enough Air Conditioning Units