ENTREPRENEURSHIP

Detailed explanation-1: -Anticipation Inventory or Seasonal Inventory is built in anticipation of future demand, planned promotional programs, seasonal fluctuations, plant shutdowns, and vacations. Companies build anticipation inventory to maintain level production throughout the year.

Detailed explanation-2: -Simply put, anticipation inventory is the stock that a company keeps in order to accommodate increased demand in the future. An obvious example is a drink retailer stocking more cold drinks in hot summer months. This strategy can ultimately help businesses to weather expected spikes in demand.

Detailed explanation-3: -Anticipation inventory is also referred to as build up stock, seasonal stock, and speculative inventory. Other basic uses of inventory include safety stock (or buffer inventory), cycle inventory (or lot-size inventory), and in-transit inventory. Safety stock is often confused with anticipation inventory.