4
Q:
A) eliminate the possibility of a stockout | B) control the likelihood of a stockout due to the variability of demand during lead time |
C) replace failed units with good ones | D) eliminate the likelihood of a stockout due to erroneous inventory tally |
Answer: B) control the likelihood of a stockout due to the variability of demand during lead time
Explanation:
Explanation:
The purpose of safety stock is to control the likelihood of a stockout due to the variability of demand during lead time. Stockouts contribute to the direct loss of any type of business.