CIPS Exam L4M7 Topic 1 Question 55 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 55
Topic #: 1

[All L4M7 Questions]

Buffer stock is a level of stock which ...

Ais when the physical ordering process should start to replenish used items

Bis half of the actual stock that needs to be in the warehouse

Cis the maximum stock in inventory

Dis the minimum stock level below which actual stock should not fall

Show Suggested Answer

Suggested Answer: D

Buffer stock serves as a safety net to prevent stockouts by ensuring that a minimum stock level is always maintained. This strategy is essential in whole-life asset management to manage demand fluctuations and minimize the risk of supply chain disruptions.

by Rozella at Mar 09, 2025, 05:21 PM

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Felicitas

5 hours ago

You know, this whole buffer stock thing reminds me of my fridge at home. I always have a secret stash of snacks as my 'buffer stock' just in case.

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Willard

1 days ago

Haha, option B? Really? That's like saying the buffer stock is half of the actual stock. Who comes up with these answers?

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Louann

2 days ago

So, buffer stock is both a safety net for low stock levels and a cap for excessive stock. Makes sense.

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Mirta

2 days ago

Come on, it's clearly Option C. The buffer stock is the maximum stock level in the inventory. Anything else is just plain wrong.

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Jonelle

3 days ago

I see your point, Marjory. Buffer stock can also help in managing demand fluctuations.

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Marjory

4 days ago

But isn't buffer stock also the maximum stock in inventory to prevent overstocking?

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Keith

5 days ago

I think Option A makes the most sense. The buffer stock is the level that triggers the physical ordering process to replenish used items.

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Louann

5 days ago

I agree with Jonelle, having a buffer stock ensures we don't run out of inventory.

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Jonelle

7 days ago

I think buffer stock is the minimum stock level below which actual stock should not fall.

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Octavio

1 months ago

Option D seems correct to me. The buffer stock is the minimum level below which the actual stock should not fall.

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Chandra

20 days ago

Yes, having a buffer stock helps to ensure that we can meet customer demand even during unexpected fluctuations in demand.

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Allene

26 days ago

I think option D is correct too. The buffer stock is important to prevent stockouts.

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