// ROBOTICS AND SMART FACTORIES TERM
Buffer Stock
Buffer stock, also known as safety stock, is an extra quantity of inventory held to prevent stockouts due to unexpected demand fluctuations or supply delays. It acts as a cushion against uncertainty.
TECHNICAL DEFINITION
Buffer stock, or safety stock, is an additional quantity of inventory maintained to mitigate the risk of stockouts caused by variability in demand or lead times, ensuring continuous production or customer service levels.
BACKGROUND
Inventory or stock is a quantity of the goods and materials that a business holds for the ultimate goal of resale, production or utilisation.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Safety stock
- reserve stock
- contingency stock
- security stock
USAGE NOTE
Maintaining adequate buffer stock is essential for avoiding production stoppages and meeting customer orders during unforeseen disruptions.