To minimize the possibility of running out of inventory, most companies add a ____ to their inventory.
A) safety stock
B) lead time stock level
C) few days
D) replenishment factor

Question

Quizplus · Accepted Answer

Safety stock is a buffer stock maintained by companies to protect against unexpected demand or delays in the supply chain. It helps to ensure that the company does not run out of inventory and can fulfill orders on time. Adding safety stock is a common practice to minimize the possibility of stockouts. The other options are not specific inventory management tools used to minimize the risk of stockouts.

To Minimize the Possibility of Running Out of Inventory, Most