Measures the imbalance between customer demand and actual supply capacity.
What it Measures ?
Compares forecasted demand with actual supply.
Relevant StakeHolders
Demand Planner, Supply Planner
Why it Matters ?
Reduces demand-supply mismatches.
In-depth Use Case / Real-world Example
A company manufacturing medical devices calculates Demand-Supply Variability Ratio by comparing actual customer demand with available supply. If the demand for a specific device fluctuates between 500 and 700 units per month, but the supply remains constant at 600 units, this ratio helps identify the level of variability, enabling better planning and risk mitigation.
Sample Formula
Variance Between Forecasted and Actual Demand-Supply