Asked by
Palwinder Shergill
on Oct 18, 2024Verified
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.
Safety Inventory
A stock of goods or materials kept as a buffer to mitigate the risk of stockouts due to uncertainties in supply or demand.
Demand Uncertainty
The degree of unpredictability or variability regarding customer demand for a product or service, often affecting inventory management and supply chain planning.
- Recognize various inventory classifications and their functions in the supply chain context.
Verified Answer
KP
Learning Objectives
- Recognize various inventory classifications and their functions in the supply chain context.
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