In general, companies keep more safety stock when demand for items is easy to predict.

Name: In general, companies keep more safety stock when demand for items is easy to predict.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Companies keep less safety stock when demand for items is easy to predict, because they can more accurately forecast their inventory needs. Safety stock is typically kept as a buffer for demand variability and uncertainty, so when demand is predictable, there is less need for a large safety stock.

In General, Companies Keep More Safety Stock When Demand for Items