How to reduce Demand Variability in Supply Chain Management

Social Share

The term Demand Variability in Supply Chain is a measurement of how much variability can occur in the demand from customers. In other words, it is the variability between what is expected to happen and what really happens. there are several factors that contribute to Demand Variability in Supply Chain management.

  • The complexness of the demand that may occur from customers.
  • The variation in the demand among the worldwide organizations.
  • Missing to find out the details within Supply Chain Management.
  • Foreseeing and predicting the variables at the production unit and to customers.
  • Change in the Lead Times at the production unit and among customers
  • Adding more suppliers and more subcontractors in the Supply Chain
  • Adding smaller suppliers in the Supply Chain

After knowing details about the above factors the manufacturers must identify which factor contributed to the variability in Supply Chain Management. New strategies should be prepared and managed by the Supply Chain Management Professionals to reduce the variability in Supply Chain Management.

There is a term called “Bullwhip Effect” in Supply Chain Management which is used to describe the variability. This term explains the large swings in inventory with respect to the changes in the demand from consumers. As the demand from customers cannot be predicted the inventory and other resources must be maintained foreseeing the demand. These forecasting methods are largely dependent on statistical data and sometimes these data may not be accurate. For overcoming this a safety stock is maintained by the manufacturers at their stores.

The demand should be managed not with forecasting alone and all departmental activities need to be controlled by proper planning.

get in touch

Fill your details in the form below and we will be in touch to discuss your learning needs

    Full Name

    Email Id

    Phone Number

    Message

    Latest Blogs

    Transformative Power of Internships during your bachelor’s Program

    Transformative Power of Internships during your bachelor’s Program

    Transforming Decision-Making Through Big Data

    Transforming Decision-Making Through Big Data

    Ramadan Blessings-Uniting Communities Through Compassion and Service – A Westford WeCares Initiative!

    Uniting Communities Through Compassion and Service – A Westford WeCares Initiative!

    Title 1

    Mastering Soft Skills: Why Communication, Leadership, and Critical Thinking Matter in Bachelor Programs

    Westford Continues To Empower Women With Over 3 Million Dirhams In Accelerather Scholarships

    Westford Continues To Empower Women With Over 3 Million Dirhams In Accelerather Scholarships