Basics of Supply Chain Management

Chapter 4

Demand Forecasting and Demand Management

4.1 Introduction

In a marketplace there are suppliers who supply raw materials, parts, or subassemblies to the assemblers, who assemble the finished products and ship them in large quantities to the distributors, who distribute the finished products among the retailers, who sell them to the customers, who are the final consumers of the finished product. There are also competitors who compete in the same marketplace with similar or substitute products. Demand management includes a basic understanding of the market and its target customers’ expectations, a definition of value, and a fundamental overview of demand forecasting and demand planning.

4.2 Understanding Target Customers

Understanding ...