What is Anticipation Inventory?

Anticipation Inventory refers to the stock that a company accumulates in advance of expected increases in demand or potential supply shortages. This type of inventory is typically built up in anticipation of events like seasonal sales, promotions, holidays, or potential disruptions in supply chains (e.g., strikes, natural disasters). By holding anticipation inventory, businesses can meet customer demand promptly without facing stockouts, ensuring smooth operations during peak periods or unforeseen challenges. It’s a strategic approach to managing supply and demand fluctuations.