Fluctuations in demand are inevitable when dealing with any kind of product, since, no matter how essential the given product could be. There will always be competitors, oversaturation of the market with the given product, or any other issue that will finally lead to demand rates swinging from high to low. The given phenomenon is quite dangerous since it can easily lead to overages in inventory; not being consumed, the goods are going to pile up until they reach the overage point.
The given problem, however, is relatively easy to tackle. There are many ways to address the issue of overage, the most obvious being dropping the price to the threshold, thus, boosting sales by addressing people’s desire for discounts and other advantages. Arguably, the given method is quite efficient; however, it cannot be doubted that such a course of action might lead to financial issues within a company. Selling the product too cheap might result in losing much money, which is quite undesirable for a company in the course of demand fluctuation.
Creating an effective and relatively short promotion campaign could also be considered as another adequate measure to address the problem. By offering the potential customers certain rewards, such as discount coupons, one can possibly sell the inventory that is currently in overages and, at the same time, save a considerable amount of money.