Buffer inventory is required as:
A) Compensation for the uncertainties inherent in supply and demand
B) Compensation for differences in the timing of supply and demand
C) One or more stages in the operation cannot supply all the items it produces simultaneously
D) Material cannot be transported instantaneously between the point of supply and the point of demand

Question

Quizplus · Accepted Answer

Buffer inventory is primarily used to compensate for uncertainties in supply and demand, ensuring that there is enough stock to meet unexpected fluctuations.

Buffer Inventory Is Required As