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______ is held to respond to the uncertainties in demand and supply levels.

User Questborn
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Answer:

Safety Stock.

Step-by-step explanation:

Safety Stock is held to respond to the uncertainties in demand and supply levels because it is an additional amount of a product or material which is generally held in an inventory to mitigate or lessen the risk that a product or material will become out of

stock.

In Business management, the safety stock can be calculated using the following formula;

Safety stock = (Md * Ml) - (Ad * Al)

Where;

Md = maximum daily usage.

Ml = maximum lead time in days.

Ad = average daily usage.

Al = average lead time in days.

User Zorgatone
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