Buffer stock
What Buffer stock means in Business GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Buffer stock
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Reference: AQA
Stock held so that production does not stop when a delivery is late; reliable suppliers reduce the need for it.
Extra stock held so that production can continue; JIT keeps this to a minimum.
The minimum stock level held by a business.
A minimum level of inventory kept on hand to protect against unexpected surges in demand or delays from suppliers.
Topics that use Buffer stock
- Influences on business (AQA GCSE)
- Production processes (AQA GCSE)
- The role of procurement (AQA GCSE)
- Working with suppliers (Pearson Edexcel GCSE)
Related terms
- Just-in-Time (JIT)
- Batch Production
- Efficiency
- Flow Production
- Lead time
- Lead times
- Procurement
- Waste reduction
Using Buffer stock in the exam
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