**3.18 Anticipation inventory**

Anticipation inventory is an extra finished products or raw materials that a company must keep such inventory on hand to meet expecting a change in customer demand in the near future. This stock would provide benefits to companies by satisfying their customers if there is a surge in demand. These are built up in advance for the reason of large sales, a promotion program, or a plant shutdown period. It keeps men and machine ready for future needs. For example, keeping crackers well before Diwali or air coolers or air conditioners before summer.
