Buffer stock

Buffer stock is goods held, usually at the downstream end of a facility or process, to protect the customer from starvation when an abrupt increase in short-term demand exceeds short-term production capacity. It differs from safety stock: buffer stock protects the customer from the producer under an abrupt demand change, while safety stock protects the producer from incapability in upstream processes and suppliers. The terms buffer and safety stock are often used interchangeably, which creates confusion.

Source checked1/1 values · 2026-10-25Methodology

Specification

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Study notes

Buffer stock is usually held at the downstream end of a facility or process.
It protects the customer from starvation if short-term demand exceeds short-term production capacity.
Buffer stock protects the customer from the producer in the event of an abrupt demand change.
Safety stock protects the producer from incapability in upstream processes and suppliers.
Buffer and safety stock are often used interchangeably, which creates confusion.
The document cross-references Inventory; no matching reference id is available.