SCM 411 FINAL | 130 Questions with 100% Correct Answers | Verified | Latest Update 2024 | 28 Pages

Inventory carried for the purpose of satisfying demand that exceeds the amount forecasted for a given period is A) cycle inventory. B) demand inventory. C) safety inventory. D) security inventory. - C) safety inventory. Safety inventory is carried because A) demand forecasts are accurate. B) demand forecasts are uncertain. C) adequate supplies are available. D) excess product was manufactured. - B) demand forecasts are uncertain The trade-off that a supply chain manager must consider when planning safety inventory is A) increasing product availability versus increasing inventory holding costs. B) decreasing product availability versus decreasing inventory holding costs. C) increasing product availability versus raising the level of safety inventory. D) decreasing product availability versus decreasing the level of safety inventory. - A) increasing product availability versus increasing inventory holding costs The issue of product availability and the level of safety inventory is particularly significant in industries where A) product life cycles are short and demand is stable. B) product life cycles are short and demand is very volatile. C) product life cycles are long and demand is stable.