Any buffer stock scheme is an attempt to use commodity storage for purposes of stabilizing prices within an entire economy or even, more commonly, an individual market. Specifically, commodities are bought if you have a surplus throughout the economy, stored, and then sold from these kind of stores when find economic shortages throughout the economy. Most buffer stock options schemes work over the same rough wrinkles: first, two costs are determined, a floor and a ceiling.
Buffer Stock Scheme
