Question: Question 9 2 . 6 The following is a true statement about Safety Stock: Safety Stock is only utilized when there is an unusual event
Question
The following is a true statement about Safety Stock:
Safety Stock is only utilized when there is an unusual event that occurs, such as a hurricane or machine failure
Safety Stock only applies to Dependent Demand Inventory NEVER Independent Demand Inventory
Safety Stock only applies to Independent Demand Inventory NEVER Dependent Demand Inventory
Based on statistics, a firm can ALWAYS be confident that they will have enough inventory to meet future demand
Based on statistics, a firm can NEVER be confident that they will have enough inventory to meet future demand
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