Many organisations hold safety stocks as part of their inventory. Which of the following is a reason for holding safety stocks?

Option C) is the correct one

C--------------------------------- CATER FOR DEMAND FORECAST ERRORS.

Safety stocks are held to meet demand in the eventuality of demand forecast errors and/or supply delays or disruptions.

In a perfect world safety stock would not be needed and all supplies would be JIT. But we dont live in a perfect world and JIT cannot be applied to all markets or industries which is why safety stock is needed.

c>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Answer C °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°

Answer will be option C) <<<<<<<<<<<<<<<<<<<<<<<<<<<<

C. To cater for demand forecast errors

>>>>>>>>>>>>  C. To cater for demand forecast errors  >>>>>>>>>>>>>>

C. To cater for demand forecast errors............. . . . . ..