What is the buffer stock explain?
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Definition of buffer stock : a stock of a basic commodity (such as tin) acquired (as by a cartel) in a period of low or unstable prices and distributed in a period of high prices to stabilize the market.
How do you identify a buffer stock?
To calculate safety stock, first, determine your product’s average daily use and multiply it by its average lead time (how many days does it take between the time an order is placed and when that order arrives to your customer). Then subtract the result from your maximum daily use multiplied by your maximum lead time.
What are the purpose of creating buffer stock?
A buffer stock of food grains is created by the government so as to distribute the procured food grains in the food-deficit areas and among the poorer strata of society at a price lower than the market price.
What is buffer stock class 9 short answer?
Buffer stock is the stock of food grains (e.g., wheat,rice etc.) procured by the government through Food Corporation of India (FCI). It is created in order to distribute food grains in deficit areas and among poorer section of society at an affordable price.
What is buffer stock Class 10 geography?
Buffer Stock – It is the stock of food grains, particularly wheat and rice, which the government procures through the Food Corporation of India (FCI). The FCI purchases these cereals directly from the farmers of those states where they are in surplus.
What is the difference between buffer stock and safety stock?
There is an important difference between the two, which can be summarized as: Buffer stock protects your customer from you (the producer) in the event of an abrupt demand change; safety stock protects you from incapability in your upstream processes and your suppliers.
What is buffer inventory example?
Example of Buffer Inventory Consider a manufacturer and wholesaler of jams and jellies. They keep extra levels of raw materials like fruit and sugar on hand to account for disruptions from their supplier. This is their safety stock.
What is buffer stock class 7?
Buffer stock is the stock of foodgrains namely wheat and rice that is procured by the government through the Food Corporation of India (FCI) from states where there is surplus production at a pre announced price.
What is buffer stock answer Class 9?
What’s the difference between buffer stock and safety stock?