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Measuring The Variability In Supply Chains With The Peakedness

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Executive Summary

This paper introduces a novel way to measure the variability of order flows in supply chains, the peakedness. The peakedness can be used to measure the variability assuming the order flow is a general point process. The authors show basic properties of the peakedness, and demonstrate its computation from real-time continuous demand processes, and cumulative demand collected at fixed time intervals as well. They also show that the peakedness can be used to characterize demand, forecast, and inventory variables, to effectively manage the variability.

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