_____ is extra stock so that when demand is heavier than expected,orders can still be filled.
A)Buffer
B)JIT
C)EOQ
D)ELS

Question

Quizplus · Accepted Answer

Buffer stock, also known as safety stock, is extra inventory maintained to meet unexpected fluctuations in demand or supply. It acts as a cushion against uncertainties in the market and ensures that customer orders can still be filled even in the face of unexpected demand spikes or supply chain disruptions. JIT (Just-in-Time) is a lean inventory management approach that relies on small batches and frequent deliveries, while EOQ (Economic Order Quantity) is a formula used to calculate the optimal order quantity based on factors such as demand, holding costs, and ordering costs. ELS (Effective Lead Time) is the time period between placing an order and receiving the stock, which affects the overall inventory holding and ordering patterns. While all these concepts are important in inventory management, the best choice for extra stock to meet unexpected demand is buffer stock.

_____ Is Extra Stock So That When Demand Is Heavier