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1 year ago

of inventory can absorb variations in flow rates by acting as a source of supply for a downstream step.

Business

1 answer:

Vanyuwa [196]1 year ago

8 0

Buffer of inventory can absorb variations in flow rates by acting as a source of supply for a downstream step.

<h3>What is a buffer?</h3>

In manufacturing, a buffer is used to account for fluctuations in the production process. Consider a buffer as a means to guarantee that your production line will continue to function normally even if unexpected circumstances arise.

Having enough supplies on hand to ensure smooth operations is one example of a buffer in manufacturing. To help stabilize any fluctuations they encounter with their supply and demand chains, production capabilities, and lead times, manufacturers will often keep inventories of the raw materials and supplies needed for production on hand, as well as occasionally inventories of finished goods awaiting shipment.
Without the proper buffers, manufacturing procedures may sluggish, which would result in more costs and lower profitability.

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