Question

 Differentiate clearly between Buffer Stock (Safety Stock) and the Reorder Level (ROL).
Discuss how supply lead time variations affect the determination of the reorder point.

05 Aug 2026
Answer :
Word Count : 599
Buffer Stock, also known as Safety Stock, and Reorder Level (ROL) are two important concepts in Inventory and Stores Management. Although both are related to maintaining adequate inventory and avoiding stock-outs, they serve different purposes and are determined differently. Buffer Stock or Safety Stock refers to the additional quantity of inventory kept above the expected requirement to protect against uncertainties in demand and supply. It acts as a reserve that can be used when actual demand is higher than anticipated, when deliveries are delayed, or when other uncertainties occur. For example, if a store normally requires 100 units during the expected supply lead time, it may maintain an additional 20 units as safety stock. Thus, safety stock provides protection against unexpected fluctuations and helps ensure continuous production and sales operations. The level of safety stock depends on factors such as demand variability, supply reliability, lead time uncertainty, desired service _______ _______ _____ ___ _____ ____ ____ _______ _______ ______ ________ ________.
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