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What Are Inventory Buffers?

Understand how Inventory Buffers fit into the supply chain

An inventory buffer is additional inventory kept on-hand in case of emergencies, transportation delays or surges in demand. Buffer inventory takes up additional space and can be costly, especially with inventory that has a shelf-life. However, benefits include protection against fluctuations in demand or the market, ensuring a stabilizing of company revenue and the avoidance of supply chain disruption.