Supply And Demand Planning Definition

Supply and demand planning is the proactive management of inventory levels to meet customer demand. The goal of supply and demand planning is to ensure that the correct level of inventory is available at all times, while also minimizing both the cost of inventory and the risk of stock outs.

In order to achieve these goals, supply and demand planners must have a good understanding of both the short-term and long-term trends in customer demand. They must also be able to forecast inventory levels accurately, taking into account factors such as lead time, production capacity, and supplier reliability.