The appropriate level of safety stock is typically determined by A. carrying sufficient safety stock so as to eliminate all stockouts. B. choosing the level of safety stock that assures a given service level. C. minimizing the expected stockout cost. D. taking the square root of the economic order quantity.

Respuesta :

Answer:

The correct answer is B.  choosing the level of safety stock that assures a given service level.

Explanation:

The success in the management of the stock is to find the quantity of products that are needed and the most appropriate time to do so in order to have a greater benefit and a reduction of the costs. This circumstance is called "Optimal Order Point".

But the optimal Order Point cannot guarantee delivery under unplanned circumstances. The stock is not a fixed whole, it is changing and does not always change as planned. The Stock Break takes place when a demand occurs above the expected, this circumstance tests the management of the stock and determines the importance of a correct calculation of the security stock to be able to supply customers without problems.

Thus, the formula for calculating the safety stock (SS) is:

SS = (PME-PE) * DM

In this way, through the safety stock, there will be a controlled stock of products that will serve so that supply is not interrupted when problems occur that are beyond the reach of the organization to continue supplying customers without them having to suffer the consequences of these unexpected circumstances.