What is Inventory Buffer?
Inventory Buffer A deliberately maintained reserve quantity of inventory to absorb fluctuations in supply or demand, reducing the risk of stockouts in warehousing and distribution operations.
Source: Incoterms 2020 (ICC), FIATA, IATA DGR, WCO
How is “Inventory Buffer” Used in Practice?
Maintaining an inventory buffer is critical during peak demand to prevent service disruptions from supplier delays.
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Who Needs to Know This Term?
- Freight Forwarders
- Supply Chain Managers
- Customs Brokers
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What is Inventory Buffer?
A deliberately maintained reserve quantity of inventory to absorb fluctuations in supply or demand, reducing the risk of stockouts in warehousing and distribution operations.
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