BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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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Detailed explanation-1: -The stock of foodgrains, namely rice and wheat, procured by the Government through the Food Corporation of India (FCI) is known as the Buffer Stock. The purchased food grains are stored in granaries.
Detailed explanation-2: -Safety stock is an additional quantity of an item held in the inventory to reduce the risk that the item will be out of stock. It acts as a buffer stock in case sales are greater than planned and/or the supplier is unable to deliver the additional units at the expected time.
Detailed explanation-3: -Safety stock inventory, sometimes called buffer stock, is the level of extra stock that is maintained to mitigate risk of run-out for raw materials or finished goods due to uncertainties in supply or demand.
Detailed explanation-4: -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.