What is stock reserve?
Others answers (2)
- Hari PrakashNov 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.
- eAnswers...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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