What are buffer stocks used for
The higher the level of this stock, the more accurate the company's original forecasts for stock requirements has proven to be. In turn, the company may then feel it can reduce the amount of buffer stock needed in the future. A variation on this process, known as a buffer stock scheme, can be used in a market as a whole. Buffer inventory is a portion of a company's merchandise that is sometimes referred to as safety stock.These terms can be used to refer to any goods that a company has on site or en route that exceeds its current needs. Safety stock can be beneficial because it can help to ensure consistency of availability to consumers, but there may be drawbacks, such as the inability to sell the extra supplies.