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Which type of adjusted stock level is assigned to an item to ensure the requisitioning objective remains constant and does not fluctuate due to demand patterns?

User Columbo
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Final answer:

The type of adjusted stock level designed to keep the requisitioning objective stable, irrespective of demand fluctuation, is known as safety stock. It is used in inventory management to prevent stockouts by serving as a buffer. Proper planning and analysis of demand patterns and lead times are required to set safety stock levels effectively.

Step-by-step explanation:

The type of adjusted stock level assigned to an item to ensure the requisitioning objective remains constant and does not fluctuate due to demand patterns is commonly referred to as the safety stock level. This inventory management concept involves holding extra stock in reserve to guard against stockouts caused by variations in demand or supply times.

The safety stock level acts as a buffer, ensuring that even if actual demand exceeds the forecasted demand or if a delay in delivery occurs, there will still be enough product on hand to meet customer needs without interruption.

Maintaining a proper safety stock level requires careful planning and analysis of past demand patterns, lead times, and service level goals. The aim is to minimize costs while ensuring an optimal balance between carrying costs of inventory and service levels to customers.

User Gravelpot
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