Companies using seasonal inventory will maintain a level inventory increase rate of production for periods of high demand.

Understand the Problem

The question is making a statement about how companies using seasonal inventory manage their production rates during periods of high demand, indicating a misunderstanding or incorrect assertion that may need clarification.

More Information

Companies using seasonal inventory typically build up inventory during periods of low demand to prepare for high demand. They do not rely on increasing the production rate during high demand but rather on their stockpile.

Tips

A common mistake is assuming firms increase production sustainably during high demand, but they actually depend on pre-built inventory.

Sources

• Chapter 3 Supply Chain Drivers and Metrics - Studocu - studocu.com