Demand variability is the term used to describe variations in consumer demand over time, which may be brought on by random events, market trends, promotions, seasonality, or changes in the economy. Planning an inventory is made more difficult by high demand variability, which also raises the possibility of stockouts or overstocking. To protect against this unpredictability, inventory optimization strategies frequently include flexible supply plans and safety stock. One of the main objectives of supply chain managers is to decrease variability through improved forecasting, customer segmentation, and lead time reduction.
