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buffer inventory

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buffer inventory

Alternative term for buffer stock.



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Buffer inventory differences are ignored for this purpose, although this does not imply that buffer inventories do not vary among transactions.
The reduced need for buffer inventory directly reduces inventory costs and increasing effective capacity allows more throughput and lowers the cost per unit.
JIT delivery problems can be addressed while simultaneously maintaining a buffer inventory of raw materials and finished goods as all parts do not need to be delivered just in time to adopt JIT.
 
 
 
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