__________ is needed to cover the demand during the replenishment lead time in case actual demand is greater than expected demand.
A) Lead time stocks
B) Random stocks
C) Safety stock
D) Warehouse stocks
E) Safety orders

Question

Quizplus · Accepted Answer

Safety stock is specifically designed to cover unexpected demand during the replenishment lead time. Lead time stocks refer to inventory that is needed to cover the normal lead time required to receive a replenishment order. Random stocks and warehouse stocks are not specific to covering demand during the lead time. Safety orders are a potential option for managing inventory, but not the most appropriate answer to cover unexpected demand during lead time.

__________ Is Needed to Cover the Demand During the Replenishment