Safety stock increases when:
A)probability of a stockout increases.
B)average demand increases.
C)delivery speed increases.
D)demand fluctuations decrease.

Name: Safety stock increases when: A)probability of a stockout increases. B)average demand increases. C)delivery speed increases. D)demand fluctuations decrease.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Safety stock increases when average demand increases to ensure that there is enough inventory to meet the higher demand and avoid stockouts.

Safety Stock Increases When