Most organizations maintain _____ to accommodate unexpected changes in demand and supply and allow for variations in delivery time.
A) safety stocks
B) just-in-time inventories
C) economic order quantities
D) ISO standards
E) lean manufacturing processes

Question

Quizplus · Accepted Answer

Safety stocks are usually maintained to accommodate unexpected changes in demand and supply as well as to allow for variations in delivery time. These stocks act as a cushion to protect against uncertain demand or delay in delivery of raw materials. Just-in-time inventories, economic order quantities, ISO standards, and lean manufacturing processes can all be used in inventory management but they do not directly address the need for accommodating unexpected changes in demand and supply.

Most Organizations Maintain _____ to Accommodate Unexpected Changes in Demand