A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is called: a) Just-in-time inventory.
b) Budgeted stock.
c) Continuous inventory.
d) Capital stock.
e) Safety stock.

e) Safety stock.

Explanation:

The term that describes this form of safety-net for companies is called safety stock. Companies tend to have this in order to be able to maintain their business flow as efficiently as possible in case there are unforeseen increases in demand. Otherwise, if demand drastically increases and they do not have this safety stock the company will run out of stock immediately and lose out on sales as they wait for more stock to arrive, which can also cause that stock to sell out immediately due to the backed-up demand, which can lead to the business buying backed up for months.

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explanation:

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