The integration of the storage of optical data using fiber loops and extremely rapid optical based switching via nonlinear optical loop mirrors (NOLMs) are recognized as an optimal approach for all-optical processing. This article presents a novel integration of these technologies to create an efficient buffering-switching device aimed at mitigating signal contention. Through thorough analysis, we explore the limitations of this integrated device in achieving error-free processing across multiple buffering cycles. Various factors, such as different types of noise leading to fluctuations in intensity of buffered and demultiplexed signals, are assessed. Additionally, we delve into the switching characteristics of NOLM demultiplexer to provide a comprehensive understanding of the device's performance.