What is extra inventory held in the event demand exceeds supply?
A) Safety inventory
B) Cycle inventory
C) Performance inventory
D) Capacity inventory

Question

Quizplus · Accepted Answer

Safety inventory is specifically held to mitigate the risk of stockouts in the event of unexpected demand or supply chain disruptions. Cycle inventory is related to the regular fluctuations in demand and lead time, while performance inventory is extra stock held to improve production efficiency. Capacity inventory refers to spare production capacity available as a backup.

What Is Extra Inventory Held in the Event Demand Exceeds