approximately £500 000 p.a. to run, but excess capacity can be hired out to other
noncompeting rms. This becomes especially important during the winter months when
consumer demand is considerably reduced. Even during the summer months demand is
highly temperature sensitive. Derrick’s, therefore, bases its sales on a deseasonalized
forecast, related to increases in disposable real incomes, and hopes that stocks will be
adequate to cope with sequences of extreme high temperatures