Buffer Stock
Inventory Management
Buffer Stock
Inventory intentionally held to absorb uncertainty, disruptions or imbalance between processes.
Examples
- 01Between the paint shop and assembly, a buffer stock of 40 bodies protects assembly from short paint-line stops.
- 02The warehouse review checks buffer stock levels by location and asks why some buffers are always full and others always empty.
- 03After the paint line becomes more stable, the buffer stock is reduced from 40 to 25 bodies, freeing floor space and capital.