Diego owns Signature Gifts, a store that specializes in items that businesses can customize with their company name or logo and then give away as advertising or customer-loyalty rewards. He is projecting that the economy will rebound this fall. He ordered additional holiday-themed gifts in February in anticipation of possible surge in sales during the holiday season. In this case, which of the following methods is Diego using to be sure that he has enough gifts for extra holiday customers?
A)just-in-time inventory
B)smoothing
C)benchmarking
D)buffering
E)diversification

Question

Quizplus · Accepted Answer

Diego is using buffering to ensure that he has enough gifts for extra holiday customers. By ordering additional holiday-themed gifts in February, Diego is keeping an inventory buffer to accommodate for any potential surge in sales during the holiday season.

Diego Owns Signature Gifts, a Store That Specializes in Items