ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buffer stock:
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Goods kept in store to cover seasonaldemand e.g. Christmas sale
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b Goods kept in store to cover unforeseenshortages or fluctuations in demand
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -The correct answer is A reserve of commodities used to offset deficit. Buffer stock: Buffer stock is a reserve of commodities used to offset deficits. It is maintained by the government for essential commodities and necessities.
Detailed explanation-2: -The Government of India has adopted the policy of buffer stocks to minimise the fluctuations in the food prices. Buffer stocks serve as shock absorbers in the economy and provide a defence mechanism against the widely fluctuating price levels.
Detailed explanation-3: -Safety stock is an extra quantity of a product which is stored in the warehouse to prevent an out-of-stock situation. It serves as insurance against fluctuations in demand.
There is 1 question to complete.