Short & sweet: Seasonality

Seasonality is demand for a product that generally fluctuates throughout the year. In addition to annual seasonalities, there are also fluctuations in demand over months, weeks or even days. These still play a subordinate role in the demand forecast.

Our tip:

Seasonal factors must be reliably recognized and taken into account in the sales forecast, otherwise they will result in demand uncertainty and thus unnecessary safety stocks. The more precisely seasonality is recognized and reflected in production and purchasing, the more market-synchronized the entire value chain can work. Following the seasonal nature of production requires flexibility and therefore money. Not following seasonal trends requires stocks and therefore also money. It is becoming increasingly important to balance this “trade-off” between flexibility costs and inventory costs in order to remain competitive in the long term. Many companies still have a lot of catching up to do here.

Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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