Looking for the answer to the question below related to Management?
If demand is not uniform and constant, then stockout risks can be controlled by:
A. increasing the EOQ.
B. spreading annual demand over more frequent, but smaller, orders.
C. raising the selling price to reduce demand.
D. adding safety stock.
E. reducing the reorder point.
The Correct Answer Is:
- D. adding safety stock.
I hope you got the answer to your question.