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

What are the methods of training for supervisors, What are the methods of t...

What are the methods of training for supervisors? Therefore, training of supervisors must be plan through keeping the above-mentioned points into mind. Given are the ways of tr

Define business process benchmarking, Question 1: (a) Define Business ...

Question 1: (a) Define Business Process Benchmarking and explain why it is used in a company. (b) Describe four types or forms of Benchmarking methods. Give one a

Explain how conflict occurs at different levels of company, Question 1: ...

Question 1: (a) "Conflict in organizations can be both functional and dysfunctional." Critically discuss the statement illustrating your answer with examples. (b) Explain h

Identify levels of interdependence - financial institution, Q. Identify thr...

Q. Identify three levels of interdependence and give an organizational example for each Q. A large financial institution is losing market share to savvy upstart companies, and i

The formula for computing additional paid, The formula for computing additi...

The formula for computing additional paid-in capital in excess of par is shares of stock times

Explain assumptions underlying organisational development, Question 1: ...

Question 1: (a) Describe the philosophy and associated implications of the Harvard model of Human Resource Management (HRM) for managing people in the organization. Questio

Explain how effective brand management can assist ib4e''s, Over the past fe...

Over the past few years, the company iB4e has underperformed compared with its competitors which enjoy stronger brand recognition. In addition, lots of experienced staff responsibl

What are the factors of non-monetary motivation, What are the factors of no...

What are the factors of non-monetary motivation? Non-monetary Motivation: The factors leading mainly towards motivation are as follows: a. Achievement: Personal satisfacti

Determinants at the organizational and community level, 1. Develop a handou...

1. Develop a handout that clearly outlines the distinguishing facets of 2 different models & interventions involving determinants at the organizational, community, and society leve

Termination, how can a owner cancel the contract

how can a owner cancel the contract

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