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Handling demand cyclicity through inventory buffers
We often see demand in retail outlets peaking on weekends. This cycle repeats and can be predicted. It is a classic case of weekly cyclicity in demand.
Conventional inventory buffers fail to account for this cyclicity. They typically end up suggesting higher inventory buffers on weekdays and do result in stockouts on weekends.
Is there a better way to make the inventory buffers more dynamic?
Demand Sensing comes in handy here. It estimates day wise demand, thereby accounting for higher sales during weekends. Dynamic inventory buffers based on Demand Sensing ramp up inventory on Fridays and ramp down on Mondays. We get higher availability during weekends and lower inventory on weekdays, offering fresher products to consumers consistently!
Keep it simple!