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Troyanec [42]
3 years ago
9

Safety stock is inventory held to guard against uncertainty. True or False

Business
2 answers:
dangina [55]3 years ago
7 0

Answer:

True.

Explanation:

Safety inventory is an inventory level at which order is placed for more inventory. It is also known as Minimum Inventory Level or Buffer inventory. It is the level of inventory maintained to take care of errors in estimating the lead time or inventory usage during the lead time. This level of inventory is necessary to avoid stockouts. It takes care of any emergency or abnormal consumption of inventory.

eimsori [14]3 years ago
3 0

Answer: True

Explanation:

Safety stock is a particular level of inventory set by the inventory/store manager that the inventory must not go below in order to help the company never to run out of products in their inventory. The aim of safety stock is to ensure that a company's inventory would never be empty and also so that any given point buyers can always purchase products from the company

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Answer:

The present value at 11% is $3,902.13,$3,479.85  at 16% and $2,615.57  at 30%

Explanation:

The present value formula is given as :

PV=FV/(1+r)^n

Where FV is the future value of cash flows such as the ones given in the question

r is the rate of return at 11%,16% and 30%

n is the applicable time horizon relevant to each of the cash flow.

Find attached spreadsheet for detailed calculations.

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