Buffer stock refers to a reserve quantity of a product kept by a business to prevent running out of important materials or components.
In the context of the GCSE Business course, holding buffer stock ensures that a business can continue to meet customer demand even if there are unexpected spikes in sales or delays in receiving new stock from suppliers. By maintaining a buffer stock, businesses can reduce the risk of lost sales due to unavailable products and can better manage production schedules without interruptions.
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