Question

______________ refers to the practice of ordering extra inventory beyond expected demand to prevent stockouts while the ______________ refers to an inventory management technique where an incoming train unloads materials directly into outbound trucks.

Answer 1

Safety stock inventory management  refers to the practice of ordering extra inventory beyond expected demand to prevent stockouts.

What is Safety stock inventory?

Safety stock inventory management is known to be a kind of more or extra inventory that is said to have been ordered way above the expected demand.

Note that this technique is often used to stop or hinder any form of stockouts that is said to have been caused by incorrect forecasting or unforeseen events in customer demand.

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