Mismatching demand and supply is a condition where the supply and demand do not match. There is two condition under the mismatching demand and supply: a) exceeds demand is a situation in which demand for the product or service exceeds its supply in the market. b) exceeds supply is a situation in which the product or service supplied exceeds its demand in the market. The impact on supply exceeds demand in the goods manufacturing will result in a pile of inventory goods which included in the storage cost of the company. However, in the service sectors, the impact on supply exceeds demand would have a greater impact on service cannot be inventoried this would be a complete loss. The impact on demand exceeds supply in the goods manufacturing sector, it would lead to a stock-out and dissatisfied consumers, but some consumer still buys the product. On the other hand, the impact on demand exceeds supply in the service sector would result in a greater loss because the consumer can easily go to another service sectors because in service sectors are easy to be duplicated by competitors. Therefore, it is important to match the supply with the demand for both in goods manufacturing services and services sectors.
