Certified Supply Chain Professional (CSCP) Practice Exam

What is the purpose of anticipation inventory?

1. To maintain a basic stock level

2. To cover trends of increased sales and disruptions

3. To manage seasonal fluctuations

4. To minimize holding costs

The correct answer is: To cover trends of increased sales and disruptions

The purpose of anticipation inventory is primarily to cover trends of increased sales and disruptions. This type of inventory is built up in anticipation of future demand spikes, such as during peak shopping seasons or promotional events, as well as to protect against supply chain disruptions, such as natural disasters or supplier delays. By holding anticipation inventory, companies can ensure they have enough products on hand to meet unexpected increases in customer demand or to mitigate the risks associated with potential supply chain interruptions. This proactive approach allows businesses to maintain customer satisfaction and minimize lost sales, thereby supporting overall operational effectiveness. While maintaining a basic stock level and managing seasonal fluctuations are important inventory management strategies, they do not specifically capture the proactive nature of anticipation inventory, which focuses on preparing for expected future changes in demand or supply disruptions. Minimizing holding costs is a general inventory management objective; however, it does not align with the specific goal of building up inventory in advance of known future needs.