Major Constraints of Demand Fluctuation and Strategies of Warehouses

Major Constraints of demand fluctuation and strategies of warehouses

Saravjeet Singh (A00080211)

Introduction: The fluctuation demand is that when the demand gets higher or lesser due to certain factors. The interest of the market determines the demand of the product. Sometimes the demands increase and decreases which becomes a major problem to the warehouse inventory. There are various reasons behind this fluctuations in the demand such as seasonal products, more taxes, availability of the product and prices. So, the best way of maintaining these fluctuations is proper planning. A proper plan could lead to reduce the demand fluctuations in the warehouses.

Major Constraints of demand fluctuations

Expansion or Contraction: When the demand increases or decreases due to the product availability or pricing. The expansion or contraction occurs in the demand of the products. If the prices of the products go low, the demand of the product increases, it is called as expansion of demand. If the prices of any product rises, its demand gets low in the market. This is called contraction of demand.

Technological Development: It also plays an important role in demand fluctuation. Improved technology give rise to increase in demand in the market. People wants to buy new and advanced products like iPhone X is launched and it showed a great output in the market.

Off Season Products: There are some off season products which does not have good demand in the market which leads to demand fluctuations. Their demand decreases and increases according to season.

Inaccurate Inventory: The inventory plays a vital role in the warehouses and the demand of the products in the market. Proper detailed inventory plan should be done before keeping that in the warehouse stock.

Strategies to flexing capacities to meet demand for warehouses

• Create a proper plan for the warehouse inventory
• Determine the warehouse needs
• Find the weak areas for change in the warehouse
• Identify the solutions to problems
• Evaluate the new plans and ideas

Reference

Staff, I. (n.d.). How to Manage Seasonal Fluctuations in Sales. Retrieved February 26, 2018, from https://www.inc.com/guides/2010/10/how-to-manage-seasonal-fluctuations.html