Question

In an inventory control model the ‘Buffer stock’ is

Q: Answer-In an inventory control model the ‘Buffer stock’ is the level of stock

Buffer stock or strategic stock or safety stock or buffer inventory is defined as a supply of inputs held as a reserve in case there are future demand and supply fluctuations. It is the excess inventory or safety stock, which retains some kind of buffer to protect in case of uncertain future.

the level of stock

A Equal to hhalf of the actual stock

B At which the ordering process should start

C Minimum stock level below which actual stock should not fall

D Maximum stock in inventory

E Quarter of the annual carrying cost

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In an inventory control model the ‘Buffer stock’ is

Solution