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Question

The amount of safety stock is dependent on the desired level of service that the company wants to provide to customers.

 

1) true

2)false

Asked By RadiantSkyline44 at

Answered By Expert

Travis

Expert · 5.4k answers · 5k people helped

Step 1/2

The statement is true.

Explanation:

Step 2/2

Below is a more detailed explanation of the relationship between safety stock and the desired level of service in a company's operations:

Safety Stock:

Explanation:

Safety stock, also known as buffer stock or safety inventory, is the extra inventory that a company holds beyond its average inventory levels. It acts as a cushion to safeguard against uncertainties in both demand and supply. Companies maintain safety stock to ensure they can meet customer demand consistently, even when faced with unexpected fluctuations or disruptions in the supply chain. Safety stock is crucial for achieving a high level of service to customers.

Desired Level of Service:

Explanation:

The desired level of service, often referred to as the service level, is a critical metric in operations and inventory management. It represents the company's commitment to fulfilling customer orders reliably and promptly. A higher service level implies a greater dedication to customer satisfaction. It typically means that a company aims to meet a higher percentage of customer demand promptly, reducing the risk of stockouts, delayed deliveries, and unfulfilled orders.

The Relationship:

Explanation:

The relationship between safety stock and the desired level of service is intricately linked:

Explanation:

In summary, the desired level of service that a company aims to provide to its customers plays a pivotal role in determining the amount of safety stock it maintains. A higher service level requires a larger safety stock to ensure that customer demand is consistently met, even in the face of unforeseen challenges. Companies must carefully consider their service level targets, the associated risks, and the financial implications of safety stock to strike the right balance between customer satisfaction and operational costs.

Final Answer

The statement is true. The amount of safety stock is directly related to the desired level of service that a company wants to provide to its customers. Safety stock acts as a buffer to ensure consistent service by guarding against supply and demand uncertainties. A higher desired service level typically requires maintaining more safety stock to reduce the risk of stockouts and meet customer orders reliably.

🧑‍🏫 More Questions

EXERCISE 48 PROBLEMS–PART I The following questions are based on Map T-13, the “Mono Craters, California” quadrangle (scale 1:62,500; contour interval 80 feet), and Figures 48-5 and 48-7, a detailed map and stereogram, and Map T-23a, a satellite image, of the same region. The heavily glaciated eastern crest of the Sierra Nevada is seen along the western sides of the map and stereograms (37°52'37"N, 119°12'40"W). During the Pleistocene, glaciers in this region flowed down the valleys on the eastern slope of the Sierra toward the Mono Lake basin to the northeast. Large lateral moraines are found at the mouths of each canyon. 1. (a) A small glacier is located just north of the Dana Plateau (in the northwest section of the map). In what kind of glacial landform is this glacier found? (b) What evidence suggests this feature was eroded by a glacier that was larger than the present one? 2. (a) What is the name for the kind of glacial landform illustrated by Mt. Gibbs? (On the topographic map, the dashed black line showing the boundary between Mono and Tuolumne Counties runs through the summit of Mt. Gibbs.) (b) How does this kind of glacial landform develop? Large lateral moraines can be see at the mouth of Bloody Canyon (Walker Lake and Walker Creek are between these moraines; 37°52'28"N, 119°09'53"W). The glacier that left these moraines flowed down Bloody Canyon from near Mono Pass. Sawmill Canyon (just south of Bloody Canyon) consists of two large lateral moraines—these moraines were left by a glacier that at one time also flowed down Bloody Canyon. 3. How deep (thick) was the ice in the glacier that formed the lateral moraines at the bottom of Bloody Canyon? You may assume that the ice reached the top of the lateral moraines. Estimate the height of the lateral moraine just south of the word “Lake” in “Walker Lake.” feet 4. Based on the evidence you see in the map and in the stereogram, explain the formation of Walker Lake. 5. (a) Which set of moraines formed first: the Bloody Canyon moraines or the Sawmill Canyon moraines? (b) How do you know? 0 2 = 3 4 MILES 3000 0 3000 6000 9000 12000 15000 11 18000 21000 FEET T-13 2 3 4 5 KILOMETERS La Vining Contour interval 80 ft. 400 16 Tee Vixing. Vinger PE Allery Lab ON 7354 Creek Lower Horse Meadow Here Dana Williams Butte Plateau Glacier Canon Canyon MONO 00 Springe Dana oras Gibbs 34 Mt Dana GIM Le . Creek Canyon Sidur Lake MEDARIO Y 61 Bohler Funk Ehane Canyon Wale Con Mt Gibbs mu Walker inte ta Bloody Creek Le Sardin La W prstine Lake Mono Pass Lab Mt Lewis Parker S le Parker Pass z Parker Jake Poker Lake ها را با دارا دااا Flele Lao LOCATION Mono Craters, CA 1:62,500 Crest CALIFORNIA 2 > Parker Pk Kolp PK Kuna Mt Wood Reversed Physical Geography Laboratory Manual Figure 48-7: Stereogram of Bloody Canyon and Walker Lake along the eastern crest of the Sierra Nevada. North is to the left side of the page scale 1:40,000: USGS photographs, 1993; ---N). 336 UUUUUUUUUUUUU 0 0 0 T-23a USGS Landsat 7 image of Mono Lake and the Mono Craters volcanoes, California (1999) 1:140,000 N Walker Lake Walker CA 11600 BO T1200 11000 da Bottom of Valley 1080p 00 9200 9000 Direction of Ice Flow Fifth Step 9000 Fourth Step Sardine Lake Mono Third -a Pass Summit Step 10801Upper Sardine Lake Lake Second Step First Top of Step Valley Figure 48-5: A series of glacial steps is found in Bloody Canyon, California. On this topographic map, each step is shown with abrupt change in slope (where the contour lines are close together). USGS "Koip Peak, California," US Topo quadrangle (scale approx. 1:30,000; contour interval 40 feet; N).