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TYPES OF
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SEASON
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SPECULATIVE
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SAFE
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CYCLE STOCK
*Cycle stock is an inventory that results from replenishment of inventory
sold or used in the production.
*The periodically replenished stock that stock that keeps the supply
chain moving. Example, bread.
*It is required to meet demand and replenishment times (lead times)
Orders are scheduled to arrive just as the last unit is sold since demand
and lead times are constant and known. Example, vegetables, rice and
others.
* Cycle stock is the average amount of inventory a business needs to
meet customer demand between the times it orders more inventories
from suppliers.

IN-TRANSIT INVENTORY
* In-transit stock is defined as the inventory that is currently being
transported where the items are en-route from location to another.
* In-transit inventory is usually referred for on the place of shipment as
it is not available at the destination.
* The goods or materials that in transit are in the ownership of the firm
but in the possession of the carrier.
* Inventories that is put in transit to allow for the time it takes to receive
material through the production process and deliver goods at the end of
output.

SAFETY STOCK
* Safety stock is inventory held in reserve to protect against the
uncertainties of supply and demand and used to cover unpredictable
fluctuations in demand . This could increase demand due to changes in
government policies and supply decrease, due to strike in factory.
* Main purpose for maintaining this stock is to avoid stock outs.
* Unpredictability fluctuation in demand daily and weekly.
* Commodities are bought when there is a a surplus in the economy,
stored and then sold from these stores when there are economic
shortages.
* Replenishment cycle as protection against stock out named Fluctuation
stock out.

SPECULATIVE STOCK
* Refers to inventory that a business obtains and holds in anticipation of future
demand, rather than to meet current demand.
* This type stock most commonly used as cost saving measure, though to get
ahead of the market.
* Companies typically buy speculative inventory because theyre protecting
against or preparing for, some type of future event that makes buying inventory
earlier if necessity. This can be raw materials that are bought forward for
financial or supply reason.
* This stock is inventory is built up for future peak seasonal and uncertainties.

Reason of speculative inventory:

Price increase
Company purchases speculative inventory is based on anticipation of
higher price.
Seasonality
To protect against uncertain demand due to seasonality.
Availability
Potential risk to retailers that may cause them to build up speculative
inventory is lack of available labor and materials.
Manufacturers
Manufacturers prepared a safety stock earlier, if the uncertainties occur
even higher demand than usual than companies need hire extra workers,
or pay overtime and purchase additional resource in a hurry.

SEASONAL STOCK
*Seasonal stock is a form of speculative stock that involves
accumulation of inventory before a seasonal period begins.
* Larger demand will be stockpiled earlier for seasonal sell
* This only occurs with agricultural product and seasonal items.

DEAD STOCK
Dead stock consist of items that are no longer bought by customer, or
items that have no use in production process. These are items for
which there has been zero demand for a long time and for which
there will probably be no demand in the future.
A term used to describe merchandise that was never sold to or used by
consumers before being removed from sale, usually because it is was
out-dated.
Dead stock may obsolete throughout a company or only at one stock
keeping has been dead inventory with overproduction which customer
doesnt want.