Teaching Note | HBS Case Collection | May 1997

Module Overview: Coordinating and Managing Supply Chains: Matching Supply and Demand TN

by Ananth Raman

Abstract

Prepares students to configure operating and distribution systems to provide product (or service) supply to match customer demand. Begins by introducing students to the supply-demand mismatch problem, documenting its significance in many companies, and suggesting ways to quantify its components. Also examines the underlying causes of mismatched supply and demand; although emanating primarily from a firm's inability to forecast demand, supply-demand mismatch is exacerbated by poor planning, operational constraints, and high working capital costs among other factors. Helps students identify how managers can reduce supply-demand mismatch costs, not only by reducing exacerbating factors but also by employing other mechanisms, such as effective use of supply chain intermediaries.

Keywords: Demand and Consumers; Working Capital; Distribution; Cost of Capital; Management Practices and Processes; Supply Chain Management; Forecasting and Prediction; Supply and Industry;

Citation:

Raman, Ananth. "Module Overview: Coordinating and Managing Supply Chains: Matching Supply and Demand TN." Harvard Business School Teaching Note 697-126, May 1997.