Distortion in MRP systems can be minimized when safety stock is held at the

A) purchased component or raw material level.
B) work-in-process level.
C) finished goods level.
D) A and B.
E) A and C.

Holding safety stock at the finished goods level can result in distortions in MRP systems as it could lead to overproduction and excess inventory. Instead, holding safety stock at the purchased component or raw material level, and/or the work-in-process level would be more effective in minimizing such distortions as it would ensure that the necessary components/materials are available to complete the required production. Thus, the best choice is E (holding safety stock at the purchased component or raw material level, and finished goods level).