Demand management/planning

The real test of how well a demand management/planning process Is working should be how high the percentage of perfect order achievement Is compared to the number of days of Inventory and the amount of capacity needed to achieve that level. 

Wachs, M. (1991). Transportation Demand Management Policy Implications of Recent Behavioral Research. Journal of Planning Literature 5(4)333-341. 

The objective of order and demand management is to forecast future sales as precisely as possible, manage customer orders from entry to delivery, and consolidate forecast and orders with supply chain inventory requirements in order to generate a holistic demand plan for purchasing, production, and distribution planning. 

RCCP Set-up RCCP Execution Capacity Evaluation Review Capacity Evaluation Issue Resolution Demand Version Creation Scenario Creation and Initiation PIR Management Plan Capacity... 

The bids and the proportion of respondents who accepted each bid can be used for estimating an aggregate demand curve for a discrete commodity, i.e. to introduce the Water Resource Management Plan or not. Mean WTP can then be computed as the area under this curve (see, for example, Johansson, 1993, pp. 62, and Soderqvist, 1995).Thatis ... 

Multiple forecasts for the same line of business within the organization are common (if any planning is even done). The gap between what is planned and what actually happens represents lost profits and lost opportunities. The new paradigm for retail supply chain management begins with an accurate view of customer demand. That demand drives planning for inventory, production, and distribution within some understood error parameters. Consumers will never be completely predictable. At the same time, prediction is bounded by limitations in our statistical and modeling sciences. We can... 

Teamwork is not a simplistic, mechanistic work organization technique that can be appUed easily with immediate results. To the contrary, it can be a complex management approach that demands well-planned support in all its phases to be effective. Teamwork is not a panacea and is not suitable to all organizational contexts. 

The implementation of a new demand management system helped a large U.S. direct store delivery company improve forecasting accuracy by 4 percent and increased service levels by 6 percent. Despite growing volumes, the company was able to hold inventory costs flat. The company also found that based on the new forecast, the sales department was better equipped to plan profitable sales promotions. The project s savings exceeded expectations. 

Demand management is the process that balances the customers requirements with the capabilities of the supply chain. With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions. A good demand management process uses point-of-sale and key customer data to reduce uncertainty and provide efficient flows throughout the supply chain. 

In this section, it will be performed a literature review for each one of the four categories of the Demand management - Statistical Forecast, Sales and Operations Planning (S OP), Collaborative Plaiming and Forecasting Replenishment (CPFR) and Vendor managed Inventory (VMI). This review allowed identify the DDSC characteristics for each category which was used to develop the five level maturity model. 

An important component of demand management is finding ways to reduce demand variability and improve operational flexibility. They argue that reducing demand variability aids in consistent planning and reduce costs, and that increasing flexibility helps the firm respond quickly to internal and external events. 

For demand management, it is suggested to focus on Statistical Forecast and Sales and Operations Planning (S OP) as described below ... 

Review of Volume and Layout Decisions Manufacturing Planning and Control Systems Influence of Supply Chain on Demand Management Detailed Material Planning Detailed Capacity Planning Just-in-Time (JIT)... 

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