When safety stock is deemed absolutely necessary, the usual policy is to build it into which category of the MRP logic?
A) Gross Requirements
B) Scheduled Receipts
C) Projected On Hand
D) Net Requirements
E) Planned Order Receipts

Question

Quizplus · Accepted Answer

Safety stock is typically incorporated into the Projected On Hand category within the Material Requirements Planning (MRP) logic. This ensures that there is a buffer of inventory to protect against uncertainties in demand or supply.

When Safety Stock Is Deemed Absolutely Necessary, the Usual Policy