Inventories of finished product which are in addition to the safety stock and are designed to carry a business to the seasonal bulge in the purchasing production of sale are termed as anticipation stocks the first step in the determination of anticipation finished good inventory is to prepare a forecast of sale by period along with an estimate of the probable degree forecast of sale by period along with an estimate of the probable degree of error in the forecast possible error can be why did after comparing fast forecast with active result in the case the chances of error many opportunity for recovery from a poor estimated small and penalty of error large it is advisable to build ample anticipation abstract on the other hand is production can be termed the adjusted to sale registration list of need not to be Hai the guiding principle in Planning the level of anticipation process to minimise the combined cost of being out of stock and the cost of caring inventory
