A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is calledMultiple choice question.production stocksafety stockbudgeted stocksafety units
Question
A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is calledMultiple choice question.production stocksafety stockbudgeted stocksafety units
Solution
The correct answer is safety stock. This type of inventory is kept on hand to protect against potential future shortages. It acts as a buffer in case the demand for a product is greater than expected, or if there are issues with the supply chain that prevent restocking in a timely manner.
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