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Making Supply Meet

Demand in an

Uncertain World

by Marshall L. Fisher, Janice H. Hammond,

Walter R. Obermeyer, and Ananth Raman

Harvard Business Review

Reprint 94302

HarvardBusinessReview

MAY-JUNE 1994

M.L. FISHER, J.H. HAMMOND,

W.R. OBERMEYER, AND A. RAMAN

MAKING SUPPLY MEET DEMAND

IN AN UNCERTAIN WORLD

94302

CHRISTOPHER MEYER

HOW THE RIGHT MEASURES HELP TEAMS EXCEL

94305

CRAIG SMITH

THE NEW CORPORATE PHILANTHROPY

94309

TODD B. CARVER

AND ALBERT A. VONDRA

ALTERNATIVE DISPUTE RESOLUTION:

WHY IT DOESN’T WORK AND WHY IT DOES

94301

BRUCE G. POSNER

AND LAWRENCE R. ROTHSTEIN

REINVENTING THE BUSINESS OF GOVERNMENT:

AN INTERVIEW WITH CHANGE CATALYST DAVID OSBORNE

94306

JULIA LIEBLICH

HBR CASE STUDY

MANAGING A MANIC-DEPRESSIVE

94303

PERSPECTIVES

THE RUSSIAN INVESTMENT DILEMMA

94307

NOAH WALLEY

AND BRADLEY WHITEHEAD

IN QUESTION

IT’S NOT EASY BEING GREEN

94310

KEVIN R. MCDONALD

WORLD VIEW

RUSSIAN RAW MATERIALS:

CONVERTING THREAT INTO OPPORTUNITY

ROBERT SCHRANK

FIRST PERSON CLASSIC

TWO WOMEN, THREE MEN ON A RAFT

94304

94308

HBR

MAY-JUNE

1994

MAKING SUPPLY MEET DEMAND

IN AN UNCERTAIN WORLD

by Marshall L. Fisher,

Janice H. Hammond, Walter R. Obermeyer, and Ananth Raman

Thanks to global competition, faster product development, and increasingly flexible manufacturing systems, an unprecedented number and variety

of products are competing in markets ranging from

apparel and toys to power tools and computers. Despite the benefits to consumers, this phenomenon

is making it more difficult for manufacturers and

retailers to predict which of their goods will sell

and to plan production and orders accordingly.

As a result, inaccurate forecasts are increasing,

and along with them the costs of those errors. Manufacturers and retailers alike are ending up with

more unwanted goods that must be marked down –

perhaps even sold at a loss – even as they lose...