What is the main goal of demand management?
The main goal of demand management is to forecast customer demand accurately and adjust the supply chain processes to meet that demand efficiently.
Why is demand forecasting critical in demand management?
Accurate demand forecasting allows businesses to plan production and inventory levels effectively, preventing stockouts or excessive inventory.
How does demand management impact inventory control?
By accurately forecasting demand, businesses can maintain optimal inventory levels, minimizing storage costs and preventing stockouts.
Why is collaboration with sales and marketing essential in demand management?
Collaboration with sales and marketing ensures that demand forecasts reflect customer preferences and market trends, helping to align production and supply chain efforts with actual demand.
How does demand management affect production scheduling?
Effective demand management helps ensure that production scheduling aligns with customer demand, reducing the risk of overproduction or underproduction.
Why is it important to monitor customer feedback in demand management?
Monitoring customer feedback helps businesses identify shifts in demand, allowing for timely adjustments to production schedules and inventory levels.
Loading Questions...
How does demand management contribute to customer satisfaction?
By ensuring that products are available when customers need them, demand management helps improve on-time delivery and customer satisfaction.
What is the role of sales orders in demand management?
Sales orders provide real-time data on customer demand, which is used to update demand forecasts and adjust production and inventory management plans.
Why is it important to balance demand and supply in a supply chain?
Balancing demand and supply ensures that products are available when needed without overstocking, reducing costs while improving customer satisfaction.