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QUESTION
Which relationship statement below is true when it comes to safety stock?
Which relationship statement below is true when it comes to safety stock?
a) When the risk of running out of stock is greater, the safety of stock is smaller.
b) When the opportunity cost of an investment is larger, the safety of the stock also gets better.
c) If the uncertainty of a forecasted demand is greater, the safety of the stock automatically gets smaller.
d) When the profit margin per unit is higher, the safety of the stock also gets higher.
