Glossary
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.
Related Glossary Terms
Active Stock
Active stock means the inventory that a business uses, refills, and moves around regularly. This stock includes items with a constant turnover rate, are consistently in demand, and require frequent restocking. Active stock differs from passive or inactive stock, including items that move slowly or are rarely used.
ABC System
A cost management system that tracks financial and operational data on resources, activities, drivers, and measures. ABC models are created and maintained within this system.
ABC Model
In cost management, a representation that illustrates the cost of resources used over a period and how these are consumed by activities and subsequently traced to products, services, or customers.