January 2023
Intermediate to advanced
250 pages
11h 7m
English
Content preview from Logistics and Supply Chain Management, 6th Edition
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Using the volume/variability matrix
It will be apparent from the earlier discussion that the choice of supply chain strategy for any given product or family of products needs to be tailored to their demand and supply characteristics. In the case of demand characteristics there are two particularly important elements: volume and variability. Volume measures the level of demand for a product over a period of time, e.g. daily, monthly, annually. Variability refers to the extent to which the level of demand changes from one time period to another.
A good starting point for identifying appropriate supply chain strategies for specific products is to calculate, at the individual SKU level, the average demand per day (or other appropriate time unit) ...
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