Question

The variability in demand orders among supply chain participants

Answer 1

Answer:

• In supply chains, Variability is the term associated with the difference between actual and planned lead times, which are not static. ... Causes of variability are due to short term situations, such as: Transport capacity available and its reliability. Planning and scheduling errors and data entry mistakes
• An important observation in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. In this paper we quantify this effect for simple, two-stage, supply chains consisting of a single retailer and a single manufacturer.

Explanation:

• Demand variability is a measure of how much variability there is in customer demand. It is the difference between what one expects to happen and what actually happens. Demand variability is driven by several factors including: The complexity of demand in general.
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