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buffer stock

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buffer stock

Minimum level of stock required to meet contingencies. Buffer stock should be sufficient to cover problems such as a break in supply or damaged stock. In some production systems, such as a just-in-time system, the aim is to eradicate the need for buffer stock.



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Operations of the buffer stock are actually guided by the movements of the five-day average DMIP in relation to the commonly called `may-buy' and `must-buy' and `may-sell' and `must-sell' bands.
The experience of the Agreement had also highlighted the limitations of relying on a buffer stock scheme as the sole mechanism for attaining price stabilization objectives.
Mining and exploration activities continue unabated, to supply a buffer stock of gold ore for processing, with current stockpiles estimated at up to 570 metric tons of high-grade ore, and with new veins being discovered regularly.
 
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