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

Practice Next

More Financial Management Questions

In what year did the Dandi March commence?
Consider the following pairs with reference to the European powers and the first factories established by them:

The "History of British India" is a three-volume work by ________.
Which movement did Mahatma Gandhi associate the slogan "Do or Die" with?
“White mutiny” in the history of modern India was related to which of the following?
What year were the LPG reforms introduced in India?
Who was the Secretary of State for India during the Morley-Minto Reforms in 1909?
Regarding the Revolt of 1857, assess the accuracy of these statements:

(I) The introduction of the Enfield rifle and its grease-coated cartridges...
Who amongst the following established a secret organization of the revolutionaries known as Mitra Mela?
With reference to the Civil Disobedience movement and the Swadeshi Movement, consider the following statements

1. Both the movements were a direc...

In an inventory control model the ‘Buffer stock’ is

Solution