Analyse one way in which having seasonal patterns of demand may affect the operational decisions of a business.

Seasonal demand refers to fluctuations and changes in sales output, dependent on the time of year. An example of a business that is impacted by seasonal demand is Havaianas. During the summer periods they will see an increase in sales when compared to the winter season. During the winter months, Havaianas will need to operate at a low level of capacity utilisation, as producing to full capacity will result in a high level of inventory that they may not be able to store, leading to high storage costs and potentially waste.