Question

Safety stock is inventory held to guard against uncertainty. True or False

Answer 1

True.

Step-by-step explanation:

Safety inventory is an inventory level at which order is placed for more inventory. It is also known as Minimum Inventory Level or Buffer inventory. It is the level of inventory maintained to take care of errors in estimating the lead time or inventory usage during the lead time. This level of inventory is necessary to avoid stockouts. It takes care of any emergency or abnormal consumption of inventory.

Answer 2

Answer: True

Step-by-step explanation:

Safety stock is a particular level of inventory set by the inventory/store manager that the inventory must not go below in order to help the company never to run out of products in their inventory. The aim of safety stock is to ensure that a company's inventory would never be empty and also so that any given point buyers can always purchase products from the company