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AnonymNov 14, 2013

What is stock reserve?

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    Nov 15, 2013

    Stock reserve or buffer stock is a stock quantity which is based on the normal average expected consumption during the lead-time to replenish depleted stock.

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    Nov 16, 2013

    The stock reserve or buffer stock is a quantity of stock that every company maintains for the unexpected supply and demand. However, it is very difficult to decide the right amount of stock that should be maintained a high stock reserve is maintained there will be more waste and if less stock reserve maintained then there is a risk of shortage. In accounting terms, stock reserve is considered as a current asset.

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