The Balancing Act – Matching Demand and Supply in Digital Economy


A lot of profits slips through the gap between supply and demand. The digital economy is narrowing the gaps progressively to retain more profit and cut the waste out.

Have you ever wondered:

  • What algorithms yield the best optimisations of profits from matching demand and supply?
  • Whether it is better to massage the demand or the supply under the current conditions prevailing in your company?
  • What are the best ways to massage the demand, and which way should you choose?
  • Which is the most cost-effective way of controlling the supply, and how to make sure you are comparing different ways on a total cost basis?
  • How much money could you save your company by improving the match between the demand and supply by 1%?
  • How to measure the match between demand and supply at various points of time and space?
  • How to measure the improvement in the match between demand and supply?
  • Can you make sure you have real-time accurate data of demand and supply to assess the match between the two?
  • What problems arise when the real-time accurate data of demand and supply is not accurate, timely or complete?

If any of these questions, or similar questions have exercised your mind then read the full description below.


The Balancing Act – Matching Demand and Supply in Digital Economy

Andy Grove of Intel hit the nail on the head with this comment attributed to him:

“For a brief moment at some point, the demand will exactly equal the supply. Rest of the time we are scrambling either to meet demand or cut supply.”

It is not a joke. Every year, every company wastes hundreds of millions of dollars because of this mismatch between demand and supply.

Imagine what would happen if supply could be magically equal to the demand at every time and place. You would not need any warehouses. There would be no inventories. There would be no excess production capacity. There would be no shortages of goods at any time or place.

Of course, that is not possible in reality. It is just a thought experiment.

In reality, demand will either be short or surplus of supply. That is why you have to go through the arduous exercise of making them match each other. And closer you can bring them to each other, less you will waste.

This quest is not new. For centuries people have used the idiom ‘cut your cloth to suit your coat’ to say exactly the same thing.

In the industrial age, this quest to cut the waste new a new vigour, and now with the advent of the information age it has become much more feasible than ever in the past. Optimisation algorithms have made it possible to shave those extra milliseconds of mismatch out each time you improve the heuristics.

This report discusses the key problems, and their solutions, in the current state of the art as it applies to The Balancing Act.

If you want more information on this report – click here


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