Question

The need for safety stock can be reduced by an operating strategy which: question 4 options: decreases ordering costs increases lot sizes decreases lead time variability increases lead time variability increases lead time save

Answer 1

The answer is decreases lead time variability.
Safety stock refers to the amount of stocks that set aside by the company in order to prepare for stockouts.
If the company decrease lead time variability, it will give more time for company to prepare between orders and delivery, which will reduce the probability of safety stock usage.