Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

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What type of inventory strategy involves storing seasonal products for future demand?

  1. Spot-stocking

  2. Anticipation (stockpile) inventories

  3. Assortment warehousing

  4. Just-in-time inventory

The correct answer is: Anticipation (stockpile) inventories

The type of inventory strategy that involves storing seasonal products for future demand is known as anticipation or stockpile inventories. This strategy is designed to ensure that an organization can meet expected increases in demand during specific periods, such as holidays or peak seasons. By stockpiling these seasonal goods ahead of time, companies can minimize the risk of stockouts and ensure they are able to satisfy customer demand when the time comes. Anticipation inventories allow businesses to prepare for predictable fluctuations in demand, making it easier to manage supply chain operations and maintain sales consistency throughout the year. This approach is particularly useful in industries where demand varies considerably based on the time of year, such as retail or agriculture. In contrast, the other options represent different inventory management strategies that do not focus primarily on dealing with the future needs arising from seasonal demand. Spot-stocking refers to placing inventory in specific locations to meet immediate demand rather than storing for the future. Assortment warehousing focuses on storing a variety of products to provide a range of choices rather than for seasonal peaks. Just-in-time inventory aims to align inventory levels closely with production schedules and customer demand, minimizing warehouse storage and reducing holding costs, rather than preparing in advance for seasonal changes.