Seasonal Demand

Demand may be price inelastic - Demand is not very responsive to changes in price. This means revenue will fall.

Customers can also contribute to the bullwhip effect by engaging in shortage gaming during periods of short supply by purchasing more than they need. Additionally, customers taking advantage of liberal return policies can create problems with developing accurate demand forecasts.

* Peak seasons: During peak seasons when demand exceeds capacity buyers have lower bargaining power as opposed to when ships offer last minute discounts in order to avoid

For instance often , industry associated with fashion and apparel offer seasonal discounts on their products after every six month with change in season.

* Customer demand: Rather than basing on history and forecast sale of its products, the company should pay more attention in analyzing some uncontrollable factors such as inflation, recession, and currency exchange rate which may affect customers’ buying behavior.

I recommend that we find out what about October spikes sales, and try to apply it to the rest of the year. Also, I’d consider adding special sales and discounts in March and April, the lowest sales months of the year, that should help perk up

* Changing attitudes towards shopping – parts of the population change their patterns of consumption by trading down (buying cheaper goods) or by buying less.

We first predict the annual demand for the year 1972 based on trend for 4 months of 1972 based on corresponding months of 1971.

First, great job with your example of a shortage. While I was working at a local clothing store the Yeti cup was always on a high demand. We placed the cups in the front of the store so consumers would be sure to see them as they first walked in, and they were also near the checkout line so while customers waited in line they would be bombarded by even more Yeti products. Around the Holidays the store would experience frequent shortages of Yeti cups. Sometimes the Yeti cups would be on back order for 6 months or more. The store I worked for did exactly as you stated we would buy a similar product to the Yeti such as the Orca. This would drive the demand of the Yeti cup down and still make sure the store gained a profit.

There are also demand conditions which consist of composition of home demand, size and pattern of home demand, rapid home market growth, and the push or pull of products into foreign and home countries. The overall state of demand conditions heavily influence the preparedness of a company to compete.

We first predict the annual demand for the year 1972 based on trend for 4 months of 1972 based on corresponding months of 1971.

– Irregular demand can be demand which is not consistent. For example, demand of coats, jackets in winter usually increases.

Seasonality, particularly when dealing with surf trips, may cause problems with supply and demand. If the weather shows that certain areas will not be ideal spots at certain times, the demand under those circumstances will be low. Based on the principles of supply and demand and the pricing policy, this means the cost must also lower to entice more customers. Furthermore although the reverse would suggest that then during times when the weather, time and location are going to produce results conducive to certain sports that the demand will be high and therefore the cost can be raised also. However, due to the weather being somewhat unpredictable, even the times that should be peak seasons will have days where people do

Production Strategies Make to Stock/Make to Order/Make to Forecast and the similarities/differences between them and push/pull strategies.

❖ Adjustments to inventory levels should be made in order to accommodate demands during peak seasons and low selling months.