The size of the safety stock is directly affected by all of the following except the
A)cost of a stockout.
B)probability of a stockout.
C)carrying cost of stock.
D)economic order quantity.

Question

Quizplus · Accepted Answer

The size of the safety stock is not directly affected by the economic order quantity. Safety stock is calculated based on demand variability and lead time variability, while the economic order quantity is calculated based on ordering and carrying costs. Therefore, option D is the correct answer as it does not directly impact the size of the safety stock.

The Size of the Safety Stock Is Directly Affected by All