What Are the Impacts of Demand Fluctuations on Business?
Demand fluctuations can have several significant impacts on a business, such as:
Inventory Management: Fluctuating demand can lead to either excess inventory or stockouts, both of which are costly for businesses. Cash Flow: Variations in demand can affect cash flow, making it challenging to manage expenses and investments. Pricing Strategy: Businesses may need to adjust their pricing strategies to align with changing demand conditions. Staffing Levels: Changes in demand can require adjustments in staffing levels to ensure efficient operations.