What Is the Advantage of Maintaining Buffer Stocks of Inventory

question 103

Multiple Choice

What is the advantage of maintaining buffer stocks of inventory?

• A)It brings down storage costs.
• B)It supports a JIT inventory system.
• C)It helps deal with unpredictable supplies.
• D)It helps quickly identify defective stocks.

---

Definitions:

Yearly Payments

Payments that are made once a year, often related to loans, annuities, or insurance policies.

Annual Payments

Regular amounts paid once a year, often used in the context of loan repayments or investment returns.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset.