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There are demand fluctuations and it can be difficult to forecast demand.
Therefore, in a market with demand fluctuations, monitoring is more difficult and cartels are less stable.
"We have contingency plans in place that enable us to manage supply and demand fluctuations."
Demand fluctuations (It is asked for only when it is actually needed.
Peak demand fluctuations may occur on daily, monthly, seasonal and yearly cycles.
It may also hurt their ability to respond to demand fluctuations, risking their customer service levels.
Similar to this is forward contracting, in which prices are determined the same way but are not directly influenced by market demand fluctuations.
This makes it much easier to allocate counter space according to demand fluctuations, making for less idle space.
They have to develop a system to chart these demand fluctuations, which helps them in predicting the demand cycles.
In manufacturing, you can apply new machinery and methods when they will pay off, and produce inventory to reduce demand fluctuations.
This is because of lower market liquidity, and demand fluctuations between industrial and store of value uses.
This includes fully internalizing external social costs of electricity production and pricing electricity according to demand fluctuations, even while maintaining stable supply.
The main disadvantage of BTO is manufacturers are susceptible to market demand fluctuations leading to a reduced capacity utilization in manufacturing.
In addition, uncertainties arising from demand fluctuations and the losses or gains of customers in the distribution network may significantly affect the decision-making across the industrial gas supply chains.
While monetary and fiscal policy can be used to stabilise the economy in the face of aggregate demand fluctuations, they are not very useful in confronting aggregate supply fluctuations.
Where the supply response is not quick enough to meet actual demand fluctuations, thereby causing significant lost sales, stock building may be deemed more appropriate, and is achieved by placing more kanban in the system.
If its competitors are unable to shift production so rapidly to subcontractors and vendors, the resulting difference in cost structure and/ or in the company's ability to cope with demand fluctuations may have significant strategic implications.
For instance, in estimating the amount of drugs needed for medical and scientific needs, the margin allowed for demand fluctuations was wider for Group II drugs than for Group I drugs.
So, the magnitude of profit realised in the form of money and the magnitude of surplus-value produced in the form of products may differ greatly, depending on what happens to market prices and the vagaries of supply and demand fluctuations.