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.

Marketing

Scenario:

Our product has a unique appeal during summer. We need to time our marketing initiatives effectively to tap into the peak demand.

Response:

Yes, by understanding the demand variability, we can ensure our marketing initiatives are timely and effective.