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The Purpose of Safety Stock Is To

Question 15

Multiple Choice

The purpose of safety stock is to:


A) replace failed units with good ones.
B) eliminate the possibility of a stockout.
C) eliminate the likelihood of a stockout due to erroneous inventory tally.
D) control the likelihood of a stockout due to variable demand and/or lead time.
E) protect the firm from a sudden decrease in demand.

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