Safety stock is usually held only when demand is uncertain.

Name: Safety stock is usually held only when demand is uncertain.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Safety stock is a buffer of extra inventory that is held to protect against demand or supply uncertainties. It is typically used when demand is uncertain, and helps to ensure that there is sufficient stock available to meet customer orders even when actual demand differs from what was forecasted. Thus, the statement is true.

Safety Stock Is Usually Held Only When Demand Is Uncertain