Why is matching supply with demand difficult?
Companies must match the supply of their products with the demand for their products. On average, a company may succeed and deliver the right amount at the right time to the right place, but frequently something goes wrong: wrong quantity, wrong time, wrong place. The economic consequences for a company may range from lost customers to bankruptcy. The root of all evil is that demand may vary, but supply does not. Logistics and supply chain management helps companies to overcome this challenge by finding ways to best match their supply with demand.