December 2014
Beginner
717 pages
29h 18m
English
book
Principles of Supply Chain Management, Second Edition, 2nd Edition
by Richard E. Crandall, William R. Crandall, Charlie C. Chen
Content preview from Principles of Supply Chain Management, Second Edition, 2nd Edition
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147Demand Management
In asupply chain, demand has two principal sources—independent and dependent. The
independent demand is the demand of the ultimate consumer at the end of the supply
chain. Dependent demand is the demand that occurs at each junction of the supply chain. It
is also referred to as derived demand and is a function ultimately of independent demand
(Mentzer 2006).
There are several possible approaches to managing demand as demand varies over time,
product mix, and customer mix. The demand management process must adapt to keep up
with these changes and to anticipate some changes ahead of time so that demand strate-
gies can be developed to effectively deal with them.
Accept All Demand
Some companies believe they should accept al ...
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