It is an analysis technique used in cases where price and supply change seasonally. It is mainly used in the supply of raw materials and semi-finished products.
S: Season > Easy to source and low prices
OS: Off-Season > Difficult to supply and high prices
Advantages;
Allows pre-season preparation
Reduces the risk of being out-of-stock
Increases the opportunity to buy at a lower price
Provides decision support in long-term stocking strategies
Disadvantages;
May increase inventory holding costs
Can bring a financial burden
References;
