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What is Managing Demand Fluctuations Effectively about?
Demand fluctuates over time due to various direct and indirect factors. Factors like seasonality, taxation, product availability, and pricing can all influence demand. Demand fluctuations in the supply chain lead to uncertainty in inventory levels and costs. As demand signals move up the supply chain, variability in order sizes can increase, resulting in the bullwhip effect where demand appears more variable further up the chain. This causes higher costs and inefficiencies across the entire supply chain.
- Author
- Ehtesham Akhtar
- Language
- EN