True or False: The economic benefit of stockpiling comes from the need of seasonal storage?

True because for meet to fulfill the sales volume in the future with the passage of time

True because stockpiling is :The storage of something in order to have it available in the future if the need for it increases

True.

 

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The economic benefit A benefit that can be expressed numerically as an amount of money that will be saved or generated as the result of an action. Making a business case for a new strategy or product idea usually involves pointing out the economic benefits of the proposal to decision makers, enabling them to measure the financial effects of the proposed change.////// False.

TRUE, stockpiling is in market which is related to seasonal, or fresh produce.  It can be used in other products like natural gas, crude oil (petroleum) where output is a certain capacity from the source, so production is set at that output, but demand is not equal to output. 

 

My answer will be true

We all know that products are quite seasonal. There are some products like food grains which are by nature and design seasonal. Otherwise some consumer products are also very seasonal in their demand due to the buying pattern of the consumers. For example:especially in countries like India where there are festive seasons,in India it would be October, November, December, a large number of consumer products are sold and in other countries Christmas could be one of the seasons where huge number of products are sold. That means there is a surge demand at a particular time of the year. So to cater this particular time of the year,warehouses are used to store seasonal stock. That means if a particular mobile phone is going to be sold in millions of quantities across the world during the Christmas holidays,warehouses ensure that enough stock of that particular item is available for selling. So storage space is given to commodities which are produced or imported seasonally and sold seasonally in large quantities.Items like food grains which are grown seasonally and used throughout the year are also candidates for seasonal warehousing. Seeds and fertilizers are other examples of products usually needed and at certain specific times of the year. So they need to be stored and released to the market at the appropriate time.

Well Done Every one:)

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