Improving a supply chain performance for the capital intensive oil and gas industry requires a careful balance between opportunity and risk. Global demand for energy continues to grow, especially in developing countries such as China and India, as the oil and gas industry continues to search for new sources of energy. Oil & Gas companies and their value chains have faced difficult challenges as they continue to experience unprecedented levels of volatility. One of the main sources of this is the extreme variability of demand. It has become increasingly more difficult to forecast demand and as a result, supply chain organizations are under severe pressure. Balancing the high cost of downtime versus the expense of holding excess or slow moving inventories can be the difference between profit and loss.