Capacity used to satisfy demand that is higher than forecasted is
A)safety backlog.
B)safety capacity.
C)safety inventory.
D)safety sales.

Question

Quizplus · Accepted Answer

Safety capacity is the term used for the capacity maintained by a firm to handle unexpected demand above the expected levels. It acts as a buffer to ensure smooth operations and delivery even during unforeseen demand spikes. Safety backlog refers to the demand that was not fulfilled due to a lack of capacity. Safety inventory refers to the additional inventory kept to cater to unexpected demand. Safety sales is not a relevant term in this context.

Capacity Used to Satisfy Demand That Is Higher Than Forecasted