A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is called:
A)Just-in-time inventory.
B)Budgeted stock.
C)Continuous inventory.
D)Capital stock.
E)Safety stock.

Question

Quizplus · Accepted Answer

Safety stock provides a cushion against unexpected demand and helps ensure that customers are not turned away empty-handed. Just-in-time inventory, budgeted stock, and continuous inventory don't necessarily provide this protection. Capital stock is a term used in finance and doesn't relate to inventory management.

A Quantity of Inventory That Provides Protection Against Lost Sales