Safety stock is kept in order to:
A)Guard against defective products.
B)Prevent losses created by a stockout
C)Prevent people from being injured by dangerous inventory
D)Help identify the reorder point

Question

Quizplus · Accepted Answer

Safety stock is kept to prevent losses created by a stockout. It acts as a cushion against unexpected demand, supply chain disruptions or delays in delivery. By maintaining safety stock, companies can ensure that they have sufficient inventory to meet customer demand and avoid stockouts that could lead to lost sales, backorders, and dissatisfied customers.

Safety Stock Is Kept in Order To