Holding extra inventory to protect against a supply disruption from a supplier strike is an example of buffer inventory.

Question

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Buffer inventory is held to protect against supply chain uncertainties such as supplier strikes, transportation delays, changes in demand, etc. It serves as a safety net to ensure that production and sales continue without interruption. Therefore, holding extra inventory to protect against a supplier strike is a clear example of buffer inventory.

Holding Extra Inventory to Protect Against a Supply Disruption from a Supplier