Buffer inventories, Business Management

Assignment Help:

Buffer inventories are held to protect against the uncertainties of demand and supply. An organizationgenerally knows the average demand for various items that it needs. However, the actual may not exactly match the average and could well exceed it. To meet this kind of a situation , inventories may be held in excess of the average for expected demand. Similarly teh average delivery time ( that is the time elapsing between placing an order and having the goods in stock ready for use ,and technically called as the lead time) may be known. But unpredictable events could cause the actual delivery time to be more than the average. Thus excess stocks might be kept in order to meet the demand during the time for which the delivery is delayed. These inventories which are in excess of those necessary just to meet the average demand ( during the average lead time period) held for protecting against the fluctuation in demand and lead time are know also by the terms safety stocks.


Related Discussions:- Buffer inventories

Factors - decision on proposed strategy change, Factors to Consider Before ...

Factors to Consider Before Taking a Decision on the Proposed Strategy Change Although most of the striking and important questions have been considered or highlighted which

Describe the common types of conflicts that usually arise, QUESTION Acc...

QUESTION According to Theologian Max Lucado, conflict is inevitable at the workplace, but combat is optional. However, communication theorists advocate that communication skill

Business Model Generation, RQ1 What role should external factors of demand ...

RQ1 What role should external factors of demand play in successful business models? NOTE: first fully define the role and then analyze or discuss. At least 4 paragraphs. RQ2 What i

What are the barriers to successful communication, What are the barriers to...

What are the barriers to successful communication? Barriers to Successful Communication: A barrier to successful communication does not allow the transmission of accurate

How should handled a good grievances, How should handled a good grievances?...

How should handled a good grievances? A good grievances handling must: a. It must be simple, easy to know and to operate b. It must settle grievances at lower level c.

What is non-verbal communication, QUESTION 1 (a) What is non-verbal com...

QUESTION 1 (a) What is non-verbal communication? (b) Non-verbal communication is a complex process leading to misunderstanding and misinterpretation. Examine this statement

Problem based on nature of business activity, Nature of Business Activity ...

Nature of Business Activity a) The fashion magazine is probable to contain text and coloured photos which bring in outlying greater value to the consumer than 100 pages of pap

#title.what is economic justification for the rapid growth ., what is econo...

what is economic justification for the rapid growth of premium package services?

“’Confessions of a Microfinance Heretic’: Talks at G, dear team i need to m...

dear team i need to make a case analysis of 1500 woeds on the following topic, video is also provided with the instructions from university. please contact me asap.

Workplace Stress, AsSeek out at least three individuals within your sphere ...

AsSeek out at least three individuals within your sphere of influence and ask the following: What does workplace stress feel like to you? What activities or actions do you or your

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd