BALANCING SUPPLY AND DEMAND

[sunandaC]

Some firms must accumulate inventory in advance of seasonal demand.

A toy manufacturer sees some demand year-round, but 60 percent or more of sales will come in Christmas season. By manufacturing to stock, production can kept level throughout the year.

This reduction idle plant capacity and maintains a relatively stable workforce, keeping costs down.

If demand is relatively constant but input materials are seasonal, such as in the production of canned fruits, then finished inventories help meet demand when the materials are no longer available.

 

[jitendra05]

Some firms must accumulate inventory in advance of seasonal demand.

A toy manufacturer sees some demand year-round, but 60 percent or more of sales will come in Christmas season. By manufacturing to stock, production can kept level throughout the year.

This reduction idle plant capacity and maintains a relatively stable workforce, keeping costs down.

If demand is relatively constant but input materials are seasonal, such as in the production of canned fruits, then finished inventories help meet demand when the materials are no longer available.

Hey sunanda, thanks for sharing and explaining about the concept of supply and demand. Well, i am also uploading a document which can give you more detailed information on supply and demand. So i want you to download and check it.