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Seasonality

Seasonality reflects predictable, recurring fluctuations in demand due to time of year, holidays, weekdays, or major events.

Why It Matters

  • •Incorrectly handled seasonality causes large forecast errors.
  • •Impacts when inventory must be ordered relative to peak demand.
  • •Short periods (e.g., holidays) often require highly granular forecasting.

Connection to Capital

Seasonal misalignment leads to early or excess purchasing, increasing capital lock.

Related Terms

Demand Forecast Sales Forecast Forecast Horizon

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