The key determinant of safety stock for finished goods is D. Desired service level.
Explanation:
Desired service level refers to the percentage of time you want to be able to meet customer demand during lead time. A higher desired service level means you need more safety stock to account for potential demand fluctuations.
The desired service level represents the probability of not facing a stockout, or in other words, the level of stock availability a company aims to maintain to meet customer demand without delay.
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