What is Buffer Inventory in Supply Chain Management? PDF | Download eBooks

Learn Buffer Inventory definition in supply chain management with explanation to study “What is Buffer Inventory”. Study buffer inventory explanation with SCM terms to review supply chain management course for online MBA programs.

Buffer Inventory Definition

  • An inventory that compensates for unexpected fluctuations in supply and demand; can also be called safety inventory.

    Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston

Buffer Inventory Explanation

A producer's exercises to a great extent comprise of buying crude materials and transforming those materials into real items. These exercises incorporate machining, processing, sandblasting, painting, and gathering materials. These exercises enhance the item and the organization generally speaking. Balance that with a retailer that doesn't make any items. It just buys merchandise from producers and wholesalers and markets these products to clients. A retailer's tasks comprise predominantly of coordination's and showcasing exercises. Tasks have the broadly useful of expanding an incentive to clients. For example an organization may get more business resources or improve proficiency with the utilization of current resources so as to diminish the generation expenses of its items.

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