exam: business of retail: operations & profit (july 2024 release)\nquestion 36 of 75\nthe pet store has a…

exam: business of retail: operations & profit (july 2024 release)\nquestion 36 of 75\nthe pet store has a locked trailer of extra inventory behind the store containing items to be featured in their holiday p\na. replenishment\nb. excess inventory\nc. shrinkage\nd. safety stock
Answer
Brief Explanations:
- Replenishment refers to restocking items that are running low.
- Excess inventory is goods in - hand that exceed the amount needed to meet demand.
- Shrinkage is the loss of inventory due to theft, damage, etc.
- Safety stock is extra inventory held to avoid stock - outs. The locked trailer with items for the holiday promotion is safety stock to ensure availability during peak demand.
Answer:
D. Safety stock