Laura, an inventory manager, always maintains a certain quantity of goods as a buffer to utilize in times of emergency. Which technique of controlling inventory costs does Laura use? A.
ABC classification
B.
just in time
C.
maintaining safety stock
D.
following economic order quantity

C. maintaining safety stock

Explanation:

Safety stock refers to the minimum stock level that businesses would wish to maintain at all times. The safety stock level assures a business does not experience stock out. Every time stock approaches the safety stock level, an order should be placed to replenish inventory. Businesses that apply the concept of safety stock do not allow the inventory to go below the level marked at safety stock.

The safety stock method requires inventory to be ordered when it approaches safety stock. Allowing inventory to drop below the safety stock is risking running out of stock leads to halting production.

answer(eu) is the correct answer;