contestada

The appropriate level of safety stock is typically determined by A. taking the square root of the economic order quantity. B. carrying sufficient safety stock so as to eliminate all stockouts. C. choosing the level of safety stock that assures a given service level. D. minimizing the expected stockout cost.

Respuesta :

eooyibo123

Answer:

choosing the level of safety stock that assures a given service level.

Explanation:

Safety stock is defined as the level of stock logisticians keep on hand to mitigate the risk of stockout as a result of uncertainty in demand and supply. It is the extra amount of inventory a company holds in case of depletion of stock due to unforeseen circumstances.

Safety stock is useful when the sales of a product exceeds expectations and when a supplier fails to deliver on time.

So safety stock should be chosen on the basis of providing a given service level to customers without getting stockout.