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.