Demand allocation

Demand allocation, in a sense, is opposite of demand consolidation. Consider demand allocation to two buckets - an amount Q produced in advance with a view to exploiting the scale economy, and an amount D Q produced in real time 

Order splitting is another form of demand allocation and it is used when very little or no advance information on demand is available. In phase 1, retailer purchases a small lot to be sold in his store to observe how customers respond the store essentially acts as a laboratory for demand assessment. If the product sells well, in phase 2, the retailer places a larger second order. If not, the sale of the product is discontinued. Clearly, this policy can succeed only if the supplier is able to deliver the second order quickly in phase 2. Because of this, the supplier is likely to charge a premium for the second order. Zara, as discussed in Chap. 1, uses a 2-period split order to sense demand, and it acts as its own supplier to produce the second order. This way it can introduce new products in rapid succession. 

---

The geographical resolution is on the basis of NUTS (Nomenclature of Territorial Units for Statistics) areas, the regional classification of the European Union. For the German case study the NUTS3 classification (439 districts) has been used to analyse the demand allocation and fuelling station distribution as well as the regional infrastructure development. 

Network Requirements Planning The network requirements planning should reduce the coordination efforts of the demand-based disciplines demand assessment and make or buy analysis by determining the type, quantity, and time of products to be produced. For that purpose, the requirements of material and components resulting from the sales plan need to be determined and distributed to the partners of the network to assure the fulfilment of demand. The fulfilment of demand is based on the subtasks network capacity planning, network demand allocation, and network procurement planning. 

How is attention allocated within the maximal performance limits of each function specified in Wickens model (Figure 3-3) The answer is that it depends on a variety of things. Fortunately we are fairly flexible in our allocation, and seem to be able to change allocation of attention fairly quickly. The change is determined by multiple factors - both endogenous (such as an individual driver s experience, skills, attitudes, etc), and exogenous (such as the road, weather, and traffic conditions). An attempt to address that issue is made in a more detailed model of the demand-allocation issue, proposed by Fuller (2005), and depicted in Figure 3-10. 

The process of designing a distribution network has two broad phases, hi the first phase, the broad structure of the supply chain network is visualized. This phase decides the number of stages in the supply chain and the role of each stage. The second phase then takes the broad stracture and converts it into specific locations and their capability, capacity, and demand allocation. This chapter focuses on issues that affect the design of the broad distribution network. Chapters 5 and 6 focus on the second phase, which starts with the broad network and results in a specific supply chain network. 

The demand allocation problem can be solved using a demand allocation model. The model requires the following inpnts ... 

United States Caustic Soda Production. In 1987 U.S. production of caustic soda increased to 10.4 million tons (fig. 1), more than 10% over that of the previous year, furthermore, 1988 production was up another 6.7% to 11.1 million tons. The demand for caustic soda has been very strong in recent years as evidenced by both increased U.S. consumption and a strong export demand. In 1987 the United States exported 1.5 million tons, 14.5% of the total caustic soda production (6), representing a 25.5% increase over exports in 1986. Then, in 1988, caustic soda exports grew by another 4.1%. A weak doUar helped boost the 1987 exports. Growth slowed in 1988, however, as a result of an industry (and world) wide caustic soda shortage, which was caused by lower U.S. chlorine consumption and forced allocations. Because industries switched from caustic to soda ash where possible, the lower 1988 export growth was not indicative of caustic soda s export potential. 

What details must be sought from the suppliers of both hardware and software packages How can the computer best meet the department s current requirements and how can it be added to if and when necessary (e.g. increased demand from planned maintenance) How can it be extended to cover other departments (network) Energy consumption input from condition monitoring, stores inventory, project work and possible interaction with space allocation must also be considered. 

Water. Costs are available from the supplier s invoices but where the operator has reservoirs and/or licenses for extraction from canals or rivers the annual fees and penalties, which are sometimes taxable, should not be forgotten. Projections of future demands will need to be carefully considered where this type of arrangement is made, since such contracts are often available only on long-term bases. Water-treatment plant will produce its own range of costs across the whole field of depreciation, materials, electricity, labor, etc. and these will need to be apportioned to the steam cost departments before final allocation to the user departments. 

The area of California influenced by a Mediterranean climate is home to over 30 million people. Climate variability and human water demand make freshwater a very precious resource. Allocations of water to cities, agriculture, and the environment create continual tension as demands for this vital and over-allocated resource grow. This paper presents a brief overview of water resource science and policy in a Mediterranean climate with substantial challenges from climate variability, climate change, and increasing human need. 

The simplest economic theories assume— somewhat unrealistically—that markets work sufficiendy well to ensure that society s scarce resources are allocated efficiendy. Of course, few markets are as well-behaved as in the elementary textbook, but nevertheless market forces can often be relied upon to allocate goods and services reasonably well between competing demands. If this is the case, then the need for economic evaluation of the costs and outcomes flowing from alternative uses of scarce resources is lessened. Mental health-care services in Britain are purchased and provided within internal markets (quasi-markets) within the state sector (mainly), and these muted market forces have clearly had some influence over allocations. Market forces have a more overt role in countries such as the USA, strongly influencing who obtains what service and at what cost to different parties. However, it is difficult to imagine circumstances in which techniques such as... 

Production planning includes considerations on production objectives over a certain time horizon given marketing forecasts for prices and product demands, equipment availability, and inventories. This is a macrolevel problem of the allocation of production capacity, time, product inventories, and labour and energy resources, so as to determine the production goals that maximize the total profit over an extended period of time into the future (e.g. a few months to a few years). 

A formal comparison between a system of grants or rewards and that of patents was presented recently by Shavell and Ypersele.22 In their article they present a review of the two systems and the theoretical positions of each of them. They state that under the system of grants, insofar as there would be no welfare loss as a result of monopoly prices, the only deviation from optimal allocation would be in relation to the incentive to invest in research. This incentive can be ambivalent. If the social or aggregate surplus is greater than the reward or grant there will be insufficient incentives, and vice versa. Either of these two possibilities may occur, as the optimal reward is equal to the expected surplus under different demand curves. 

In order to analyse the balance in view of the threat of exclusion from public financing, the author devises a demand equation with a two-stage budget allocation. The first step is to choose a therapeutic group, and the second is to choose the differentiated products. The co-payment acts as the price. The main conclusion is that when the product is included in public financing the health service can receive a discount if the political decisions are price-sensitive and the fixed cost of market entry in the event of inclusion is lower than the fixed cost of exclusion. In his study of price-cap regulation, the author insists that the mechanism should be continued in the long term, and that therefore it is necessary to account for the entire lifetime of the product and consider a discount factor. All this takes as its point of departure Abbott s 1995 model. 

---