The inventory held in case demand exceeds expectation in order to counter uncertainty is called
A)cycle inventory.
B)safety inventory.
C)seasonal inventory.
D)sourcing.

Question

Quizplus · Accepted Answer

Safety inventory is held as a buffer in case demand exceeds the forecasted amount. It acts as a safety net to cover unexpected demand variability or supply disruptions. Cycle inventory is held to cover the demand during the replenishment lead time, seasonal inventory is held when demand is expected to be high during a particular season, and sourcing refers to the process of procuring goods and services from suppliers.

The Inventory Held in Case Demand Exceeds Expectation in Order