demand-variability

Vocabulary Word

Definition

'Demand Variability' is a term in business that measures how much the demand for a product or service changes. This could be due to factors like season changes, trends, or economy.

Examples in Different Contexts

In supply chain management, 'demand-variability' refers to the changes in customer demand for products over time, affecting inventory levels, production planning, and logistics. A supply chain manager might say, 'Managing demand-variability is key to maintaining efficient operations and high service levels.'

Practice Scenarios

Operations

Scenario:

Given the fluctuations in the order volume, we need to adopt a more dynamic production strategy.

Response:

I agree, considering the demand variability, flexibility should be our key stratagem in production planning.

Business

Scenario:

We're seeing a consistent rise in sales during the holiday season. It's crucial for us to plan our stock levels carefully.

Response:

Totally, we should use advanced forecasting models to understand demand variability and avoid stock-outs.