Which type of inventory is built to counter predictable variability in demand?

Seasonal inventory is specifically built to address predictable variability in demand that corresponds with certain times of the year, like holidays or seasonal changes. Businesses often anticipate fluctuations during peak periods, such as increased sales for certain products during festive seasons. By accumulating this type of inventory ahead of time, companies can ensure they meet the expected surge in customer demand without facing stockouts, thereby facilitating uninterrupted sales and enhancing customer satisfaction. This strategic planning is crucial in industries like retail, where seasonal trends significantly influence sales patterns.

On the other hand, safety inventory, while also related to demand variability, is primarily designed to protect against unpredictable fluctuations rather than those that can be anticipated based on seasonal trends. Cycle inventory pertains to the stock a business maintains to meet regular, expected sales and procurement patterns instead of seasonality. Perpetual inventory refers to a system for tracking inventory levels in real-time but does not specifically address the concept of demand variability. Thus, seasonal inventory is the most fitting choice for countering predictable fluctuations in demand.