Which of the following options is the BEST definition of Safety Stock?
A) A level of stock that is used to sign the need to replenish stock
B) A level of stock above which stocks are too high
C) A level of stock kept to cover fluctuations in demand during lead time
D) An amount by which stock levels are increased during replenishment

Question

Quizplus · Accepted Answer

Safety stock is essentially a buffer of inventory kept to prevent stockouts and shortages due to uncertainties in demand and supply lead times. It covers fluctuations in demand during the replenishment lead time, ensuring that operations can continue smoothly without interruption.

Which of the Following Options Is the BEST Definition of Safety