Your client wants to ensure that backflush operations can continue even if the inventory level is driven below zero. At the same time, they want typical inventory transactions to be prevented from driving inventory levels below zero. Which configuration meets this requirement?

Allowing Negative Balances to be No ensures that typical transactions cannot drive levels below zero, while Override Neg for Backflush set to Yes permits backflush operations even under zero conditions.

A. This configuration prevents backflush operations when inventory is negative, contrary to requirements.
C. Allowing negative balances does not restrict standard transactions as needed.
D. This option permits both typical and backflush transactions to operate below zero, which contradicts the requirement.

Oracle Inventory User Guide, Release 12.2, Part No. E48838-11, Chapter 1 "Setting Up", Section "Defining Organization Parameters" and Chapter 2 "Profile Options", Section "INV: Override Neg for Backflush".