A quantity of merchandise or materials over the minimum needed reduce the risk of running short 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 is the quantity of inventory that is held above the minimum needed to ensure that operations can continue in case of unexpected demand or supply chain disruptions. It helps to reduce the risk of running short and ensures continuity of operations. Just-in-time inventory, budgeted stock, continuous inventory, and capital stock do not necessarily provide a buffer against unexpected demand or supply chain disruptions.

A Quantity of Merchandise or Materials Over the Minimum Needed