Supply Chain Management Strategies by Interpreting Sales Vs Demand

Variability Data

Group 1

High demand and low variability refer to situations where there is consistent, significant demand for a
product or service, and the supply or availability of that product or service remains relatively stable. In
such cases, the demand is relatively constant and predictable, and there are no significant fluctuations or
seasonal variations in the demand patterns. Here are some examples of high-demand and low-variability
scenarios:

 Basic Food Staples: Items like rice, wheat flour, sugar, cooking oil, and essential vegetables are
typically in high demand throughout the year. Their consumption remains relatively stable, and
people buy them regularly for their daily needs.
 Electricity: Electricity is a necessity for modern life, and its demand remains relatively constant.
People and businesses rely on electricity consistently, with only minor variations based on the
time of day or seasonal factors.
 Internet Services: In the modern digital age, internet services are in high demand throughout the
year, with a steady user base relying on Internet connectivity for work, communication, and
entertainment.
 Public Transportation: In urban areas, public transportation systems often experience stable
demand as people use buses, trains, and subways for daily commuting.
  Household Cleaning Products: Cleaning supplies like soap, detergent, and disinfectants are
generally in steady demand as they are regularly used in households and businesses.
 Education Services: While there may be some seasonal variations in enrollment, educational
services such as tutoring or online learning platforms tend to have consistent demand since
education is a continuous process.
 Waste Management Services: Waste collection and disposal services are generally required
consistently, regardless of season or time of year.

Strategies: - Push Based Supply chain

In a push-based supply chain, products are pushed through the channel from production up to the
retailers. This means that production happens based on the demand forecast.
A push system is preferable when there is a high demand for a given product, and having large amounts
of inventory in stock is beneficial for meeting consumer demand.

Group 2

Low demand with high variability refers to situations where there is generally not much demand for a
particular product or service, but the existing demand fluctuates significantly over time. This can pose
challenges for businesses and organizations in terms of managing inventory, workforce, and resources.
Here are some examples:

 Seasonal Products: Items like Christmas decorations, or summer-specific products often

experience low demand during off-seasons but see a significant surge in demand during specific
times of the year.
 Umbrellas: Umbrellas typically see low demand during dry seasons but high variability during
rainy seasons or in regions with unpredictable weather patterns.
 Allergy Medication: Allergy medication sales might be relatively low most of the year but
experience high variability during peak allergy seasons, like spring and fall.
 Agricultural Products: Certain crops, like strawberries, cherries, or pumpkins, may have low
demand during the off-season but see a surge in demand during specific harvest periods.
 Special Events Tickets: Tickets for sporting events, concerts, or festivals may have low demand
outside of the event dates, but demand can fluctuate drastically depending on the popularity
and timing of the event.
 Weather-Dependent Activities: Businesses offering weather-dependent activities such as
outdoor tours, or water sports may experience low demand during adverse weather conditions
and high variability when weather conditions are favorable.
 Luxury Goods: Luxury goods, like high-end jewelry or designer fashion items, may have relatively
low demand in general but experience fluctuations based on economic conditions and consumer
preferences.

In these examples, the demand for the products or services is subject to change due to seasonal,
weather-related, or other external factors. For businesses facing such low demand with high variability, it
is essential to plan and manage resources efficiently to accommodate the fluctuations effectively.

Strategies: - Pull based Supply chain

In a pull-based supply chain, procurement, production, and distribution are demand-driven rather than
based on predictions. Goods are produced in the amount and time needed.
Pull systems are often preferred when there is limited demand for a specific product, or when the cost
of managing excess inventory outweighs the benefit of having a surplus of product in stock.

Group 3

In the context of business and economics, "low demand" and "low variability" typically refer to
situations where the demand for a product or service is consistently low and does not experience
significant fluctuations over time. Here are some examples of products or services that might fit this
description:

 Raincoat Sales in a Desert Region: In regions with arid climates and infrequent rainfall, the
demand for raincoats would likely be low and steady, as people may not need them very often.
 Summer Camps in a Cold Climate: Summer camps in colder regions may experience low demand
due to the short summer season and limited time when families are willing to send their children
to camps.
 Swimwear Sales in a Landlocked Area: In areas located far from the coast or without many
recreational water bodies, the demand for swimwear is likely to be consistently low.
 Cold Weather Accessories in a Tropical Climate: In tropical regions where cold weather is rare,
the demand for items like gloves, scarves, and heavy coats would be low and not subject to
significant fluctuations.
 Seasonal Sports Equipment in an Unpopular Location: For instance, ice hockey equipment in a
country where ice hockey is not widely played, resulting in consistently low demand.
 Specialized Industrial Equipment for Rarely Occurring Tasks: Certain types of machinery or
equipment used for highly specialized tasks that occur infrequently may have low and stable
demand.
 Antique Restoration Services: The demand for restoring antique items might be low and steady,
as there is typically a limited number of antiques requiring restoration at any given time.

In these examples, the demand is low because the specific conditions or characteristics of the region or
product/service create a limited and consistent need, leading to low variability in demand over time.

Strategies: - Hybrid model using both Push-Pull Supply chain

In a hybrid push-pull supply chain, an approach combines aspects of both a push system and a pull
system. Using a hybrid approach, some items are kept on hand while others aren’t held in inventory
unless there are orders.
A hybrid approach may be a good choice if your company offers various products. One way of using both
a push and pull approach is to keep raw materials on hand, but you would hold off on production until
orders are placed.