Demand Management

Supply Chain Planning and Execution

“Demand Management”
Chapter # 4
Topic 1:Components of Demand
Management

Demand:
“A need for a particular product of
component. The demand could come from
any number of sources (e.g.; customer order
or forecast, an interplant requirement, a
branch warehouse request for a service part
or the manufacturing of another product).
Demand Management:
Components of Demand Management
Demand Plan Inputs
 It is an estimate of how many products customer will
purchase.
 At what Price?
 On what timetable?

 So the Organization and its supplies can determine,

 How much to produce
 When to produce
 When to ship it

 The demand plan is based partly on forecasting and partly

commitment by the demand side of the organization to
generate the necessary demand to meet the plan and the
goals set in the organization’s business plan.
Demand Plan Inputs:
Planning horizon and Revision
Period
Planning horizon and Revision
Period.. Cont.
Communicating Demand
Influencing Demand
Plan-do-check-action (PDCA) Model:

A four steps Moder for quality improvements:

Plan – a plan to effect improvement is developed.

Do – the plan is carried out, preferably on small scale.

Check – the effects of the plan are observed.

Action – the results are studied to determine what was

learned and what can be predicted.

Managing and Prioritizing Demand
Linkages to match organizational
strategy
Linkages to match organizational
strategy. Cont.
Collaborative Planning, Forecasting and
replenishment (CPFRP
CPFR Model
CPFR Collaboration activities and
tasks:
CPFR Collaboration activities and tasks:
CPFR Collaboration activities and tasks:
CPFR benefits and challenges: