Inventory Buffer Sizing

Inventory Buffer Sizing

Inventory buffers are used to manage Make-To-Stock products and materials. Time buffers and capacity buffers are used to manage Make-To-Order products and materials.

Inventory buffers are used to absorb demand and supply variation for those finished goods, raw materials and parts that have a high average demand relative to the optimum replenishment quantity.

The intention of an inventory buffer is to decouple the downstream customer or process from upstream leadtimes and variability. We can size inventory buffers using;

      1. The Lean approach to inventory buffer sizing.
      2. The Demand Driven approach to inventory buffer sizing.

Signup to our email list

Get the latest posts from our Answer Centre as well as other useful supply chain insights.