Business A-Level
buffer inventory
What buffer inventory means in Business A-Level, as defined for AQA.
Definition of buffer inventory
Check what you remember
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Reference: AQA
A level of stock held so that demand or delivery that is less predictable does not leave the firm short.
Topics that use buffer inventory
- Making operational decisions to improve performance: managing inventory and supply chains (AQA A-Level)
Related terms
- capacity utilisation
- Core vs non-core activities
- effectiveness versus efficiency
- ethical sourcing
- holding cost versus stockout cost
- outsourcing
- producing to order
- re-order level and quantity
Using buffer inventory in the exam
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