Buffer is a means or device used as a cushion against the shock of fluctuations in business or financial activity.

Buffer

Buffer is a means or device used as a cushion against the shock of fluctuations in business or financial activity.

Due to variability, the demand flow and the process flow never perfectly synchronize, and some sort of buffer is required when matching process output to demand.

The only buffers available are:

  • Inventory: transformation occurs before demand.
  • Time: transformation occurs after demand.
  • Capacity: above the average demand.

Ref.: Project Production Institute (PPI).

Learn more about VDC definitions.

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