What do you mean by seasonal inventory?

Business & Management
#1

During seasonal times the demand of the goods could go up, hence this inventory helps to keep the demand of goods in handy. These inventories are carried to compensate for differences in the timing of supply and demand, and to smooth out the flow of products throughout the supply chain. They are called seasonal inventories as they are often used when demand fluctuations are significant, but predictable, such as with seasonal variation.