Additional inventory kept over and above the average amount required to meet demand is called ____ inventory.
A)Seasonal
B)Work-in-process
C)Finished goods
D)Safety stock

Question

Quizplus · Accepted Answer

Safety stock inventory is kept to ensure that the business has enough inventory to meet demand even during unexpected spikes or fluctuations. It acts as a buffer between demand and the company’s ability to supply goods, ensuring that customers are still satisfied even if there are temporary supply chain disruptions or unexpected changes in demand.

Additional Inventory Kept Over and Above the Average Amount Required