The circumstance when safety stock held is large, small and zero. Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. At times when demand exceeds supply and companies are in shortage of goods, a small amount in the inventory is stocked as safety stock to meet the demand with the supply.

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Chapter 12, Problem 10DRQ

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To determine: The circumstance when safety stock held is large, small and zero.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. At times when demand exceeds supply and companies are in shortage of goods, a small amount in the inventory is stocked as safety stock to meet the demand with the supply.

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