Match the items of List I with the items of List-II and choose the correct answer from the code given…
In supply chain inventory management: Cycle stock is the regular inventory held to meet normal replenishment cycles (a-ii); Transit (pipeline) stock is inventory moving…
Choose your answer
Match the items of List I with the items of List-II and choose the correct answer from the code given below.
| List-I | List-II |
|---|---|
| (a) Cycle stock | (i) Hedge against the possibility stockout |
| (b) Transit stock | (ii) Stock to meet inventory cycle |
| (c) Buffer Stock | (iii) Stock moved between various elements of supply chain |
| (d) Safety stock | (iv) Extra stock to meet fluctuations in demand |
Answer and explanation
Correct answer D
In supply chain inventory management: Cycle stock is the regular inventory held to meet normal replenishment cycles (a-ii); Transit (pipeline) stock is inventory moving between nodes of the supply chain (b-iii); Buffer stock is extra inventory held to absorb demand fluctuations (c-iv); and Safety stock is held as a hedge against the risk of stockouts during lead time (d-i).
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UGC NET Management