Inventory planning and control Question:
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Buffer inventory is required as?

Answer:

1. Compensation for differences in the timing of supply and demand
2. Compensation for the uncertainties inherent in supply and demand
3. One or more stages in the operation cannot supply all the items it produces simultaneously
4. Material cannot be transported instantaneously between the point of supply and the point of demand

Compensation for the uncertainties inherent in supply and demand

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