Julkaisut

Miikka Tölö: Alleviating business symptoms of seasonal end-demand by product portfolio and supply chain management (25.08.2008)

Seasonal variation in demand for company’s products causes special difficulties in ensuring that the right resources will be on hand when needed and in scheduling production (Buxey, 2005). If the sales of a manufacturing company are fluctuating, the company must have flexible production or flexible inventory (Bowman, 1956). Directors in companies experiencing predictable seasonal peaks in monthly sales attempt to eliminate or control the most significant marginal costs instead of seeking perfect solutions (Buxey, 2005).

In this study we developed a framework from seasonal end-demand to company performance. First, we identified 13 business symptoms of seasonal end-demand for a company. Second, we demonstrated how the symptoms have adverse implications on company performance. Third, we presented an appropriate measure for company performance.

Furthermore, we identified 44 strategies for a company with products of seasonal end-demand that could alleviate the business symptoms of the seasonality. Nine of the strategies were classified as product portfolio management (PPM) strategies and 35 as supply chain management (SCM) strategies. Finally, we conducted a case study of four companies where we studied how the feasibility of the 44 strategies depends on factors specific to the nature of products and production in a company as well as illustrated the strategies and their usability in case companies that had different natures of products and production. In addition, we gave recommendations for these companies on implementing a strategy to improve the company performance.

Basically, the feasibility of the strategies in a company depends also on various other company specific factors than the nature of products and production in a company. These factors can vary sporadically or systematically between companies.

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