Too Much or Not Enough: Finding the Balance Between Waste and Shortages in the Supply Chain

Too Much or Not Enough: Finding the Balance Between Waste and Shortages in the Supply Chain

In the midst of the COVID-19 pandemic, the general public has become increasingly aware of the term “supply chain” as it has widely affected the availability of some basic necessities. Even before widespread shortages brought the concept of logistics to the forefront, organizations around the world have increased their supply chain capabilities and have paid much more attention to this important aspect of industry. It seems like a simple concept - provide the customer with what they want, where and when they want it. When factors such as lead time, transportation, customer order changes, and unforeseen circumstances are added in, supply chain management becomes more complex. One of the most difficult practices in supply chain management is demand planning, which involves forecasting and predicting what customers will order in the future. Inaccurate demand planning, which happens often in most industries, leads to shortages caused by underestimated demand, or waste caused by overestimated demand.

Evans, Steven

Rider University

Baccalaureate Honors Program

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English

Capstone