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Edexcel A-Level Business AS 2.3.4 3b Buffer Inventory Questions

Explain the role of reserve stock in meeting unexpected demand or delivery delays, weighing this protection against storage, funding and wastage costs in a business context.

Syllabus
First assessment 2019
Course
Business XBS11/YBS11
Level
AS

Exam points

  • Explain how buffer inventory protects a business against delivery delays or unexpected demand
  • Analyse how holding buffer inventory uses scarce storage space and ties up funds
  • Explain how perishability can turn unsold buffer inventory into a wastage cost
  • Weigh buffer-inventory costs against product availability and customer reputation in the business context

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