Seasonal Production and Seasonal Demand. Camera demand is seasonal, with about 20 percent ofconsumer demand coming in each of the first three quarters of each calendar year and 40 percent comingduring the fourth-quarter holiday season. Retailers place orders for digital cameras roughly 90 days in advance of expected sales, so as to have ample numbers on hand to satisfy camera buyer demand in the upcoming quarter. Thus, during Quarter 1 they place orders for the cameras they expect to sell in Quarter 2; during Quarter 2 they place orders for the cameras they expect to sell in Quarter 3, during Quarter3 they place orders for the cameras they expect to sell inthe peak holiday season fourth quarter; and in Quarter 4 they order the number of cameras they expect to sell in Quarter 1 of the following year.
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