Supply Chain & Procurement worked example

Demand Variability with lowest period demand observed of 40 units: a worked example in supply chain & procurement

This worked example runs the demand variability numbers for a tougher week than the baseline: lowest period demand observed of 40 units instead of the typical 80 units. Measure demand variability for Supply Chain & Procurement from the minimum, maximum, and average demand.

The inputs for this scenario

  • Lowest period demand observed: 40 units (the input this scenario stresses; the baseline uses 80)
  • Highest period demand observed: 140 units (held at the documented default)
  • Average period demand: 100 units (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Demand variability = (maximum − minimum) demand ÷ average demand × 100.
  • Demand variability works out to 100 % at these inputs, and this is the headline figure for the scenario.
  • Spread works out to 100 value at these inputs.
  • Minimum works out to 40 value at these inputs.
  • Maximum works out to 140 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where lowest period demand observed sits at 80 units and the headline result is 60 %, this scenario comes in 66.67% above the baseline at 100 %.
  • Use it to segment SKUs by volatility, set safety-stock tiers, or flag items that need closer forecasting attention. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Demand variability: 100 % (headline result)
  • Spread: 100 value
  • Minimum: 40 value
  • Maximum: 140 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Demand Variability calculator, set lowest period demand observed to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.