Author Question: Discuss how seasonality can affect inventory.[br][br][b][color=#566D7E]Question ... (Read 50 times)

geodog55

  • Hero Member
  • *****
  • Posts: 530
Discuss how seasonality can affect inventory.

Question 2

Sean is the VP of Marketing at a large chain of car dealerships. He believes in advertising heavily and investing in promotional spending because there is a strong relationship between these activities and the market value of a firm. Sean's thought process is correct because it has been proven that heavy advertising and promotional spending ensure a company's high market value.
 a. True
  b. False
 Indicate whether the statement is true or false



Kjones0604

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

Organizations that are faced with seasonality issues are constantly challenged when determining how much inventory to accumulate. Organizations that process agriculture products are a good example of supply seasonality. While the supply of the raw material is available during only one part of the year, demand is stable throughout the year. Therefore, the finished product usually has to be stored until it is sold. That is, when the raw material is available, it needs to be converted to finished product. This scenario often involves high storage costs and high obsolescence costs. An alternative scenario might be to store the raw material, or some pre-processed version of it, and use it to make the finished product as the demand dictates.

Sometimes seasonality can impact transportation, particularly if domestic water transportation is used. Another example would be the seasonality of the construction industry in the United States and its impact on the availability of flatbed tractor trailers. Although construction takes place in many areas of the United States year round, the northern states experience a slowdown in construction activity during the winter months. As spring approaches in the north, construction activity increases dramatically. The peak springtime construction season places a heavy demand on a fixed capacity of flatbed trailers to move construction supplies.

Answer to Question 2

False



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

For a complete list of videos, visit our video library