What is Anticipation Inventory in Supply Chain Management? PDF Book

Learn Anticipation Inventory definition in supply chain management with explanation to study “What is Anticipation Inventory”. Study anticipation inventory explanation with SCM terms to review supply chain management course for online MBA programs.

Anticipation Inventory Definition

  • Inventory that is accumulated to cope with expected future demand or interruptions in supply.

    Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston



Anticipation Inventory Explanation

Organizations that produce or sell items must keep stock close by to satisfy need. At times, fully expecting occasions that will or may happen, organizations intentionally keep more stock than expected to fulfill current needs. This stock is called expectation stock. Working up expectation stock is a route for makers to keep up reliable activities when the interest for their items is low. This methodology abstains from laying off laborers during times of low interest and the expenses of extra time or enlisting extra specialists when request is high. This procedure, additionally called "smoothing," gives the business a chance to keep up a steady yield and a steady workforce. Expectation stock is one of the four fundamental employments of stock, as indicated by Professor Michael Marsh of Shippensburg University. The other three are cycle stock, well being stock and in-travel stock. In-travel stock is being shipped and has not yet arrived. Well being stock, additionally called cradle stock, is stock over that expected to fulfill current need, and its motivation is to secure against unsure free market activity.

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