Which term describes the expectation of demand during lead time that can lead to safety stock adjustments?

The correct term that describes the expectation of demand during lead time that can lead to safety stock adjustments is lead-time variability. This concept refers to the unpredictability of the time it takes for an order to be delivered after it is placed, which can affect how much safety stock is required. When lead times are inconsistent, businesses must account for fluctuations in demand during that period to avoid stockouts.

Understanding lead-time variability helps organizations assess their inventory levels and adjust safety stock accordingly. Variability in lead time means that the expected demand could exceed the available inventory during that delay, necessitating an increase in safety stock to ensure customer satisfaction and operational continuity.

Other options, while relevant to inventory management practices, do not specifically address the expectation of demand relating to lead time. Inventory buffering refers to maintaining extra stock to mitigate uncertainties but does not specifically emphasize demand during lead time. Order smoothing focuses on the management of order quantities and timings to avoid peaks and troughs in inventory levels, while demand forecasting is a broader term regarding predicting future demand rather than the specific impact of lead time on safety stock adjustments.