2.3 Managing Predictable Variability

Question 1

Predictable Variability

Answer 1

refers to all temporal and structural changes in demand that can be forecast and influenced. These influencing factors can be seasonal as well as non-seasonal.

Question 2

Effects of Variability

Answer 2

Reduced efficiency (e.g., higher production costs) and decreased responsiveness (i.e., a lower service level)

Question 3

Conceptual starting points

Answer 3

▪ Managing Supply
→ e.g., by adjusting capacities, inventory and subcontracting
▪ Managing Demand
→ e.g., using short-term price discounts and promotions