Demand And Supply Planning Definition
In business, demand and supply planning is the process of forecasting future demand for a company’s products or services and planning the production, delivery and inventory to meet that demand. It is a key part of the company’s overall business strategy.
The goal of demand and supply planning is to ensure that the right products or services are delivered to customers at the right time, in the right quantities and at the right price. To do this, businesses need to have a good understanding of customer demand patterns as well as the factors that can impact production, delivery and inventory levels.
Some of the common challenges faced by businesses when it comes to demand and supply planning include:
– Forecasting customer demand accurately
– Managing changes in customer demand
– Planning production capacity to meet customer demand
– Ensuring delivery schedules are met
– Managing inventory levels
