APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

Special Items

Buffer stock (inventory)

The amount of stock that a business holds as a form of reserve stock, in case there are any circumstances that result in supplies being delayed. Such circumstances might occur due to: unreliable suppliers; a sudden increase in demand, depleting stocks before the business can replenish them; or deterioration of stock on the shelf, sometimes experienced by firms in the food industry. The level of buffer stock held will depend on numerous factors including: Pattern of demand; Lead time, policies and reliability of suppliers; Cost of holding stock; Cost of ordering and handling stock; Costs of financing stock; Type of stock / perishability; Length of product life cycle / obsolescence; Expectations eg if a business anticipates shortages in supply or price increases in the near future it may increase its stock of raw materials; Space available for storage.

Millstone Lodge, Eaton Upon Tern, Market Drayton, Shropshire, TF9 2BX - Tel : 01952 540877 - Fax : 01952 541230
Registered in England no.: 5211217 VAT Number: 815750626
www.apt-initiatives.com - sales@apt-initiatives.com | © Copyright 2008 - APT Initiatives Ltd

terms & conditions | sitemap

Valid HTML 4.01 Transitional Valid CSS!