Safety stock is used as a buffer against unexpected increases in demand, uncertainty about lead time, and unavailability of stock from suppliers.

Question

Quizplus · Accepted Answer

Safety stock is indeed used as a buffer against unexpected increases in demand, uncertainty about lead time, and unavailability of stock from suppliers. It is an extra stock that a company keeps on hand to reduce the risk of stockouts or running out of inventory.

Safety Stock Is Used as a Buffer Against Unexpected Increases