A distributor should decide his safety inventory levels based on
A)the level of safety inventory carried by all retailers supplied by him.
B)the level of safety inventory carried by other distributors.
C)the level of cycle inventory carried by manufacturers supplying him.
D)the level of cycle inventory carried by all retailers supplied by him.

Question

Quizplus · Accepted Answer

The level of safety inventory carried by all retailers supplied by the distributor is a critical factor in deciding his safety inventory levels. This is because the distributor needs to ensure they have enough inventory to meet the demands of the retailers, especially during times of uncertainty or supply chain disruptions. The safety inventory levels of other distributors, the cycle inventory of manufacturers, or the cycle inventory of retailers do not directly influence a distributor's decision on safety inventory levels as much as the safety inventory needs of the retailers they supply.

A Distributor Should Decide His Safety Inventory Levels Based on