High Variable Demand Patterns
The motor vehicle industry has an extremely high variable demand patterns. This is because demand for a motor vehicle depends on the technological level at the time which always changes rapidly. To be able to adapt to the variable demand patterns, most companies in the motor vehicle industry have employed the Just in Time system. Just in Time system is a pull system that responds to the prevailing demand patterns, as opposed to a push system, where inventory acts as a buffer between production and sales. JIT production produces the demanded commodity, at the required quality, in the exact quantities required and within the precise time they are required. Therefore, the JIT manufacturing philosophy enables motor vehicle companies to aim at maintaining zero inventories of both finished goods and raw materials. This way, they minimize losses resulting from disposing expensive inventory, which have become, absolute due technological changes.
The second industry that has high variable demand is accounting and auditing services. Accounting and auditing services depend on the tax season. Firms offering accounting and auditing services tend to have very high demand just before the deadline of submitting tax returns. This is because several businesses that do not keep proper books of account require their books to be updated so that they can submit their returns before the deadline. The problem of high variable demand in this industry is compounded by the fact that services cannot be stored. Auditing and accounting firms employ temporary and part-time workers during the peak season. It is common for such firms to woe senior citizens during the peak seasons. Accounting and auditing firms also use overtime during the peak seasons.
References
Coyle, J. J., Langley, C. J., Gibson, B., Novack, R. A., & Bard, E. J. (2008). Supply Chain Management A Logistics Perspective (8th illustrated ed.). London: Cengage Learning.
Croxton, K. L., Lambert, D. M., García-Dastugue, S. J., & Rogers, D. S. (2002). The Demand Management Process. The International Journal of Logistics Management , 13, 51-66.
Kee-Hung, L., & Cheng, E. (2009). Just-In-Time Logistics (illustrated ed.). Farnham: Gower Publishing, Ltd.
Palmatier, G. E., & Crum, C. (2009). Enterprise Sales and Operations Planning: Synchronizing Demand, Supply and Resources for Peak Performance (revised ed.). New York: J. Ross Publishing.
