Can You Distinguish Between In Process Inventory, Safety Stock Inventory And Seasonal Inventory?


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amber Jhon answered
In process inventory is the inventory which is still in the work-in-process and not considered as a finished or completed inventory. Safety stock inventory is the inventory held for offsetting the demand forecasts. It is the inventory which is held when the demand exceeds the expectations. On the other hand, the seasonal inventory is the additions which are made in the safety stock inventory to support predicable variability due to the repeatable season. Companies make seasonal inventories in the period of low demands to meet the periods of the high demand.

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