Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

Anticipation inventory is specifically designed to accommodate fluctuations in demand that arise from projected trends in sales or planned promotions. This type of inventory is built up in anticipation of future increases in customer demand that might occur due to seasonal changes, marketing campaigns, or events that can significantly boost sales.

For instance, a retailer might increase their stock of certain items before a holiday season or promotional event, responsive to historical data indicating rising demand for those products during that period. This proactive approach helps ensure that enough inventory is available to meet customer needs without facing out-of-stock situations.

In contrast, safety stock serves as a buffer against variability in demand and supply, but it is not specifically aligned with planned trends or promotions. Buffer inventory acts similarly, providing an additional layer of inventory to protect against uncertainties but again not specifically tied to anticipated sales spikes. Cycle stock refers to the portion of inventory that is planned for regular sales and replenishment based on predictable demand patterns, rather than forward-looking sales trends. Thus, anticipation inventory stands out as the correct answer, as it directly correlates to planned future sales activities.