Demand Planning: Your Guide to Demand Planning & Process
August 7, 2023 ⚊ 1 Min read ⚊ Views 60 ⚊ BLOG
Whether you are manufacturing electronics or garments, or whether you are providing financial services or catering services. The starting point for all business is market demand – how many people will buy my products/service in the coming period?
Demand planning is the science of determining how much goods should an organization manufacture given the market demand, available inventory, and the production capacity such that no buyer goes unsold and they are left with minimum or nil inventory on hand. Fluctuating demand, supplier bandwidth, and production constraints- the three core factors that determine how much will be delivered to the customer by when. Demand planning is a system which brings together these 3 elements in a collaborative and transparent manner, overlays it by advancements in predictive modelling to improve their demand accuracy on an ongoing basis.
