When demand is uncertain, what is the most appropriate action to take?
A) Recalculate safety stock
B) Increase order quantity
C) Change method of transportation
D) Increase number of warehouses for distribution

Question

Quizplus · Accepted Answer

When demand is uncertain, it is important to recalculate safety stock to ensure that enough inventory is available to meet potential demand fluctuations. Increasing order quantity or adding more warehouses may result in unnecessary costs if demand does not materialize, and changing methods of transportation may not address the issue of uncertain demand.

When Demand Is Uncertain, What Is the Most Appropriate Action