One of the secondary levers for reducing safety stock inventory is to reduce
A) supply uncertainties.
B) setup cost.
C) capacity cushions.
D) delivery size.

Question

Quizplus · Accepted Answer

Safety stock inventory is held as a buffer against uncertainty in demand or supply. By reducing supply uncertainties, such as improving communication and coordination with suppliers, safety stock inventory can be reduced as well. Therefore, reducing supply uncertainties is a secondary lever for reducing safety stock inventory. The other options (B, C, and D) may have an impact on inventory levels but are not directly related to safety stock inventory reduction.

One of the Secondary Levers for Reducing Safety Stock Inventory