What are bench stock levels based on?

• A. Lead time
• B. Consumption
• C. Forecast
• D. Vendor availability

Answer: (B)

Bench stock levels are determined by how much of each item is actually used over time—the consumption rate. By looking at historical usage, you set aside enough on hand to meet normal demand until new stock arrives, so operations aren’t disrupted. This approach focuses on real, observed use rather than what you think might happen in the future.

Lead time affects when you restock, and forecasts project future demand, but the amount kept on hand for immediate needs is based on consumption. If usage is higher or more variable, you’d adjust the bench stock upward to maintain service levels; if it’s low and stable, you can reduce it. Vendor availability can influence replenishment choices, but it doesn’t set the baseline for how much you keep ready to use.