Which of the following statements is true about safety stock?
A) it must always be carried
B) it depends only on the amount of demand
C) it depends on the required service level
D) all the above are true
E) none of the above is true

Question

Quizplus · Accepted Answer

Safety stock is not always required to be carried and it depends on multiple factors including the required service level. It is not solely dependent on the amount of demand. Therefore, option C is the correct statement.

Which of the Following Statements Is True About Safety Stock