Asked by Christopher Vartanian on Jun 17, 2024
Verified
It is better to carry more safety inventory downstream if
A) inventory is inexpensive to hold and customers are not time sensitive.
B) inventory is expensive to hold and customers are not time sensitive.
C) inventory is inexpensive to hold and customers are time sensitive.
D) inventory is expensive to hold and customers are time sensitive.
Safety Inventory
Additional stock that is kept in reserve to protect against stockouts caused by variability in demand or supply.
Time Sensitive
This term describes situations, operations, or processes that are highly dependent on the duration or timing in which they occur, necessitating prompt or precise scheduling.
Inventory Upstream
Refers to the inventory held by suppliers and manufacturers before it is distributed down the supply chain to the end consumer.
- Understand the role and importance of safety inventory in the supply chain.
- Explain the relationship between inventory placement in the supply chain and inventory costs.
Verified Answer
Learning Objectives
- Understand the role and importance of safety inventory in the supply chain.
- Explain the relationship between inventory placement in the supply chain and inventory costs.
Related questions
Weekly Demand for Corn Tortillas at Big Truck Tacos Is ...
A Distributor Should Decide His Safety Inventory Levels Based on ...
A Quantity of Inventory That Provides Protection Against Lost Sales ...
Raising the Level of Safety Inventory Increases Product Availability and ...
In Case Demand in Different Geographical Regions Is About the ...