ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Half of the actual stock
|
|
|
At which the ordering process should start
|
|
|
Minimum stock level below which actual
|
|
|
Maximum stock in inventory
|
Detailed explanation-1: -Answer: ‘Buffer stock’ is the level of stock or minimum stock level, below which actual stock should not fall. Explanation: ‘Buffer stock’ is the level of stock or minimum stock level, below which actual stock should not fall.
Detailed explanation-2: -For this reason, the minimum stock level is commonly known as safety stock or buffer stock. If the actual stock falls below the minimum stock level, there is a risk of stopping production.
Detailed explanation-3: -A minimum stock level is a threshold value that indicates the level below which actual material stock items should not normally be allowed to fall. In other words, a minimum stock level is a minimum quantity of a particular item of material that must be kept at all times.