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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

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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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