Buffer Inventory

  When you buff a car you place a thin layer of wax on the paint of the car.  This glossy wax helps protect the car's paint and body against elements like wind, weather and changes in environmental conditions.  Similarly buffer inventory is meant to help keep productions lines steady when changes in demand occur.  Some common examples of buffer inventory are:

1. Raw materials
2. Semi finished goods
3. backlogs strategically held in different centers.

Reference: Apics Dictionary 14'th Edition