Question

The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called:

a. safety stock.b. anticipation inventory.c. hedge inventory.d. smoothing inventory.

Answer 1

Safety stock is the inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time.

Step-by-step explanation:

The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called safety stock. Safety stock is a buffer of extra inventory that is maintained to prevent stockouts and ensure customer satisfaction. It acts as a cushion to absorb any unexpected fluctuations in demand or delays in replenishment.

Answer 2

Answer: The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called a safety stock.

Explanation: A safety stock is the stock a company holds back to make sure they have enough items if demand changes quickly on them. This stock acts as a safety net so that they are not without items if they need them faster than they can product them.