Safety stock helps protect an organization against stockouts.

Question

Quizplus · Accepted Answer

Safety stock is a buffer of inventory maintained by an organization to protect against stockouts. It acts as a safety net by ensuring that there is enough inventory on hand to meet unexpected increases in demand or delays in supply. By keeping safety stock, an organization can reduce the risk of stockouts and ensure that it has sufficient inventory to fulfill customer orders. So, safety stock does help protect an organization against stockouts.

Safety Stock Helps Protect an Organization Against Stockouts