Only safety inventory should be aggregated if low demand exists for low value items.

Name: Only safety inventory should be aggregated if low demand exists for low value items.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Since safety inventory is used to protect against unexpected demand, it is important to aggregate this inventory for low value items when demand is low to avoid unnecessary inventory costs. However, other types of inventory such as cycle inventory may not need to be aggregated.

Only Safety Inventory Should Be Aggregated If Low Demand Exists