The sale of ice-cream, bikinis and sunglasses usually follows which demand pattern?
A.
Growth
B.
Decline
C.
Cyclical
D.
Stable
The Answer Is:
C
This question includes an explanation.
Explanation:
These items follow a cyclical demand pattern, meaning that sales fluctuate in predictable cycles—typically aligned with seasons or climate conditions. For example, demand peaks in summer and falls sharply in winter. Recognising cyclical patterns allows procurement professionals to plan supply and inventory effectively, avoiding both shortages during peak demand and excess stock during low demand periods. This type of forecasting is particularly important in industries such as fashion, tourism, and consumer goods. Failing to account for cyclical demand can lead to missed sales opportunities or increased storage costs. In category management, understanding demand cycles ensures efficient resource allocation, supplier scheduling, and financial planning. It also supports collaborative planning with suppliers to ensure capacity aligns with market needs.
[Reference: CIPS L5M6 Study Guide, p.143, , ]
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