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Acme Company carries an additional level of inventory beyond the expected demand during reorder lead times. This additional inventory is known as

1 Answer

3 votes

Answer:

Safety stock

Step-by-step explanation:

Safety stock is a stock that eplains the level of an additional stock in order to reduce the stockout risk i.e. there is a chances when the raw material is in shortfall that because of the uncertainities in the demand and supply

So according to the given situation here the additional inventory that beyond the expected demand is known as the safety stock

So the same is relevant

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User Izzet
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