1 Understand your demand patterns

The first step to managing inventory control with demand variability is to understand your demand patterns. You need to analyze your historical sales data, identify the trends, seasonality, and cycles of your demand, and forecast your future demand based on your market conditions and customer preferences. You can use various methods and tools to perform demand analysis and forecasting, such as time series analysis, regression analysis, moving averages, exponential smoothing, or software applications.

2 Choose an appropriate inventory policy

The second step to managing inventory control with demand variability is to choose an appropriate inventory policy. An inventory policy is a set of rules and parameters that determine when and how much to order or produce to replenish your inventory. There are different types of inventory policies, such as periodic review, continuous review, reorder point, economic order quantity, or safety stock. You need to select an inventory policy that suits your demand variability, lead time, holding cost, ordering cost, and service level.

4 Monitor and adjust your inventory performance

The fourth step to managing inventory control with demand variability is to monitor and adjust your inventory performance. You need to measure your inventory performance using key indicators, such as inventory turnover, fill rate, stockout rate, or inventory accuracy. You also need to compare your actual performance with your planned performance and identify any gaps or deviations. You need to adjust your inventory policy, techniques, or parameters accordingly to correct any errors or improve any inefficiencies.

5 Collaborate with your supply chain partners

The fifth step to managing inventory control with demand variability is to collaborate with your supply chain partners. You need to communicate and coordinate with your suppliers, distributors, and customers to share information, align expectations, and synchronize activities. You can use various strategies and tools to enhance your collaboration, such as vendor-managed inventory, consignment inventory, collaborative planning, forecasting, and replenishment, or electronic data interchange.

6 Learn and innovate

The sixth step to managing inventory control with demand variability is to learn and innovate. You need to continuously evaluate your inventory control performance, learn from your successes and failures, and seek opportunities to innovate and improve. You can use various methods and tools to facilitate your learning and innovation, such as benchmarking, best practices, feedback, brainstorming, or experimentation.