•Used often in physical distribution particularly in case of seasonal products.
•Selected amount of firm’s product line is placed or spot stocked in a warehouse to fill customer orders during a critical market period.
•Spot stocking allows inventories to be placed in a variety of markets adjacent to key customers just prior to a peak selling period of season.
•For examples, suppliers of agricultural products to farmers often use spot stocking to position their products closer to market during growing season and once the sales season is over, the remaining inventory is withdrawn to central warehouse.
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