What is anticipation inventory and what are the benefits and drawbacks of having it?

What will be an ideal response?

Anticipation inventory is inventory used to absorb uneven rates of supply or demand. A plant facing seasonal demand can produce at a constant rate year-round and merely store the production during the down phase of demand. A constant level of plant utilization is easier to manage. Anticipation inventory can be costly to hold depending on storage and spoilage rates and the company's cost of capital.