The “right” amount of safety stock is often a function of Service Level.  Service Level is:Multiple ChoiceThe probability of making the right productThe probability of delayThe probability of meeting demand during a delayThe probability of delay causing more demand

What is a ‘Safety Stock Inventory’?It is the extra inventory being ordered beyond expected demand It is ordering less than the demanded number

Service level is the complement of the probability of a stockout. In other words, if a company sets the service level at 92% for a certain item it means they are willing to live with an 8% chance of having a stockout.  True False

Safety stock is inventory held to guard against uncertaintyGroup startsTrue or False

A company that maintains a sufficient safety margin by having extra inventory against certain situations is termed as:  A. Inventory  B. Lot size  C. Safety stock  D. Lead

Which two things drive the need for safety stock? (choose two)?Check All That ApplyDemand variabilityDemand variabilityWarehouse spaceWarehouse spaceDelaysDelaysManufacturing speedManufacturing speedCustomer choiceCustomer choice