Difference between buffer stock and safety stock
Answers
There is no difference between Safety stock and Buffer Stock
Safety/Buffer stock is excess inventory that acts as a buffer between forecasted and actual demand levels. This inventory is maintained so that a company has sufficient units on hand to meet unexpected customer and production demand.
The safety stock formula is as follows:
(Maximum daily usage - Average daily usage) x Lead time = Safety stock
Safety stock does not just involve finished goods; it can also be applied to raw materials, to guard against delays in the delivery of materials from suppliers.
Answer:
They are not the same.
Explanation:
Safety stock includes raw material, while the buffer is more about sufficiency, safety between operations, for example, having a quantity of bulk before the packing step.