Meaning of “buffer stock” in the English Dictionary

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"buffer stock" in Business English

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buffer stocknoun [ C or U ]

uk us

ECONOMICS, FINANCE a large supply of a commodity (= a crop, metal, fuel, etc.) that is bought and stored when extra is available, and sold when there is not enough, in order to control its price and quantity in the economy:

Rubber prices fell to a four-year low, despite purchases for the buffer stock.

COMMERCE, PRODUCTION extra products, supplies, etc that a company keeps, so it always has enough available to sell or use:

Management wants to keep a buffer stock of 500 units.

(Definition of “buffer stock” from the Cambridge Business English Dictionary © Cambridge University Press)