Demand-Supply Variability Ratio
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Category:  
Analytical

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

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.

KPI Definition

Business Value

Movement Direction

Sample Formula

Variance Between Forecasted and Actual Demand-Supply

Should Aim For
1
2
3
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