Reducing the Negative Effects of Seasonal Demand Fluctuations: A Proposal Based On Cost-Benefit Analysis

Abstract

Demand fluctuations and irregular production evolved as a result of these fluctuations are an important problem for manufacturers. In this study, problems such as high production costs caused by seasonal demand fluctuations and inability of delivering orders on time to the customer are analyzed in the case of a manufacturing firm. The proposal of utilizing production full capacity every month and storing produced goods without brand labels printed on to reduce the production costs was discussed.