Which of the following is a factor that can contribute to demand fluctuations?

Demand fluctuations can often be driven by various operational and strategic factors within the supply chain. One significant factor contributing to these fluctuations is order batching and lack of communication.

Order batching occurs when businesses group together orders to take advantage of economies of scale, which can lead to irregular ordering patterns. For instance, a retailer may place large orders with suppliers at certain times, rather than consistently ordering smaller quantities throughout the period. This can create spikes in demand that are not consistent with actual consumer purchasing behavior.

Additionally, lack of communication across the supply chain can exacerbate this issue. When participants in the supply chain—such as manufacturers, distributors, and retailers—are not sharing information effectively, they may not respond accurately to changes in consumer demand. This disconnect can lead to discrepancies between what is being ordered and what is actually needed, causing further demand fluctuations.

In contrast, factors like consistent supplier performance, accurate forecasting, and streamlined distribution channels typically work to stabilize demand rather than contribute to its fluctuation. Consistent supplier performance ensures that products are available when needed, reducing uncertainty. Accurate forecasting provides insights that help businesses predict demand trends more reliably, allowing them to align their production and inventory planning accordingly. Streamlined distribution channels facilitate smoother and faster delivery of goods, which can