What can safety stock levels help protect against in line control?

What can safety stock levels help protect against in line control?

• A. Increased production costs
• B. Supply chain disruptions
• C. High labor turnover
• D. Overproduction

Answer: (B)

Safety stock levels play a crucial role in line control by acting as a buffer against supply chain disruptions. These disruptions can occur for a variety of reasons, including unexpected supplier delays, transportation issues, or fluctuations in demand that may not align with the lead times of replenishing inventory. By maintaining a certain level of safety stock, a company ensures it has enough inventory on hand to continue production despite these disruptions. This helps to prevent production stoppages and loss of sales, thus maintaining operational efficiency and customer satisfaction. In contrast, while increased production costs, high labor turnover, and overproduction are concerns within the operational framework, they are not directly mitigated by maintaining safety stock. Safety stock is primarily focused on ensuring that the supply can meet demand despite uncertainties, which is why it is particularly effective against supply chain disruptions.

Safety stock levels play a crucial role in line control by acting as a buffer against supply chain disruptions. These disruptions can occur for a variety of reasons, including unexpected supplier delays, transportation issues, or fluctuations in demand that may not align with the lead times of replenishing inventory. By maintaining a certain level of safety stock, a company ensures it has enough inventory on hand to continue production despite these disruptions. This helps to prevent production stoppages and loss of sales, thus maintaining operational efficiency and customer satisfaction.

In contrast, while increased production costs, high labor turnover, and overproduction are concerns within the operational framework, they are not directly mitigated by maintaining safety stock. Safety stock is primarily focused on ensuring that the supply can meet demand despite uncertainties, which is why it is particularly effective against supply chain disruptions.