TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
Variety is a measure of how often and how large a variety there is to be had. The quality, number and variety are interrelated. Thus the larger the variety, the greater the value added. We can measure the value added by our companies by the quality, quantity and frequency of supply chain events.
Variety is described as differences which are neither regular nor uniform. The word 'variety' is therefore not a synonym for 'completeness' but rather denotes that the differences are not regular and uniform. For example, the huge variety of used parts in automobiles is one example of nonregular variety. In this case, when we speak of variety, it is synonymous with non-uniformity. The qualitative character of the variations in quality is indeed another quality and not a mere individual difference.
There is also the case where large quantities of stock needs to be stored. Such a situation does not allow for uniformity and hence the need for a wide variety of products. This situation has led to the production of big box stores. This kind of retail chain is characterized by a wide variety of products, large scale and high rate of customer purchases. While big box stores have their own business strategy, they adopt a wide variety strategy to achieve maximum profitability.
