Question

Which among this can be held as an insurance against future machine failure but with a calculation that this failure can be repaired before stock
gets over.
a.safety stock
b.Buffer stock
c.over production​

Answer 1

Your answer to the question is Safety stocks....

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Answer 2

Safety stock can be held as an insurance against future machine failure but with a calculation that this failure can be repaired before stock  gets over.

• It is a mechanism adequately describing a considerable degree of additional stock which is typically retained to reduce the risk of scarcity of stocks in the life of an enterprise.
• These stock outs are generally caused by supply and demand uncertainties, the fundamental deficiency of raw materials or flexible packaging or a machine failure.
• Adequate levels of safety stock allow an enterprise operation to proceed according to their plans.