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

Seasonal Inventory

Goods held in stock that are influenced by seasonal demand, requiring businesses to adjust their inventory levels according to expected sales fluctuations throughout the year.

Demand

Refers to the market's desire for a product or service, quantified by the amount people are ready to buy at various prices.

Production

The process of creating, manufacturing, or producing goods and services.