Question: Step 1 Answer : The answer is e . either C or D . Safety stock is a buffer inventory that is held to protect

Step

1

Answer :

The answer is e

.

either C or D

.

Safety stock is a buffer inventory that is held to protect against unexpected demand or supply disruptions. It can be built into either the raw materials or finished goods portion of MRP

.

In the raw materials portion, safety stock would be used to protect against unexpected delays in deliveries from suppliers. In the finished goods portion, safety stock would be used to protect against unexpected increases in demand or unexpected delays in production.

Explanation:

The amount of safety stock that is needed will depend on the specific circumstances of the company. Factors to consider include the variability of demand and supply, the lead times for deliveries and production, and the cost of carrying inventory.

Answer

The answer is e

.

either C or D

.

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