ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
How quickly the inventory will be used in a given period of time
|
|
|
A form of guaranteed payment
|
|
|
A cushion of products or materials
|
|
|
Wearing gear such as helmets while in the warehouse
|
Detailed explanation-1: -Safety stock protects you against the sudden demand surges and inaccurate market forecasts that can happen during a busy or festive season. It serves as a cushion when the products you’ve ordered take longer to reach your warehouse than you expected.
Detailed explanation-2: -Safety stock is a floor or base level of inventory from which Oracle Inventory performs all planning. In other words, the item is planned as if the safety stock quantity for the period is the zero inventory balance of the item.
Detailed explanation-3: -The terms ‘safety stock’ and ‘buffer stock’ are often used interchangeably. Both describe the extra stock retailers use as a cushion for unexpected demand or uncertainties within the supply chain.
Detailed explanation-4: -Safety Stock FAQs The optimal level depends on several factors, including inventory velocity, current and future demand, sales volume and supplier lead times. As a rule of thumb, the safety stock amount should be the amount of inventory used per day multiplied by the lead time in days.