Uses of Seasonal Variations

The seasonal variations containined in a time series have various uses some of which are outlined as under:

• It is extremely used by the producers in scheduling their production plans. A knowledge of seasonal variation enables them to diversify their product line during slack seasons and to maintain inventory at low level.
• It is advantageously used by the businessmen in formulation their policy decisions relating to purchases, sales, inventory control, personnel requirement, and advertising programme etc. A knowledge of seasonal variations helps them in boosting up their sales in slack seasons by offering various discounts and launching advertising campaigns.
• It is very much used by a consumer. A knowledge of seasonal variation guides him in purchasing the articles at low prices during the off seasons.
• It is used in analysing the seasonal pattern in a short-period time series.
• It is used in separating the cyclical and irregular forces by subtracting the seasonal variations form the total of the short-term fluctuations.
• It is used for adjustment in the value projected on the basis of trend and thereby it enables to make short-term forecasts.
• It is used in the proper appraisal of business facts influenced by seasonal variations.
• It is very much used in pricing the articles and the services in order to level up the seasonal variations in demand.