Certified Supply Chain Professional (CSCP) Practice Exam

What aspect of inventory planning can seasonal storage address?

1. Year-round demand consistency

2. Storage for perishable goods only

3. Fluctuations in demand during specific seasons

4. Cost reductions through bulk purchasing

The correct answer is: Fluctuations in demand during specific seasons

Seasonal storage is specifically designed to address fluctuations in demand during specific seasons. Businesses often experience varying levels of demand for their products throughout the year, which can be influenced by factors such as holidays, weather changes, or seasonal trends. By utilizing seasonal storage, companies can stock up on inventory in anticipation of peak demand periods. This allows them to maintain product availability without the need for immediate production or procurement during high-demand times. Consequently, this strategy helps in balancing inventory levels and preventing stockouts during peak seasons while minimizing carrying costs during off-peak periods. Other aspects, such as year-round demand consistency, are not the focus of seasonal storage since that concept aims at managing fluctuations. Additionally, seasonal storage is not limited to perishable goods alone, nor is it primarily utilized for cost reductions through bulk purchasing, as those aspects deal with different inventory management techniques. Thus, the correct focus of seasonal storage is clearly on managing demand variability specific to certain times of the year.