A product is successful but its demand changes with the season. What should the entrepreneur do?

Correct answer: Plan production and inventory according to seasonal demand

Seasonal demand forecasting helps the entrepreneur estimate when sales will rise or fall and adjust production, purchasing, staffing, and inventory. Planning this way reduces both excess stock in slow periods and shortages during peak periods. Producing the same amount, ignoring data, or merely raising price does not manage the underlying seasonal change and may harm customers or cash flow.