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Demand Management

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Engr. K.M. Sabbir Noman
Engr. K.M. Sabbir Noman

Demand management is a lean tool used to identify external demand and input it into a supply chain. It aims to improve forecast accuracy, reduce inventory investment, and better balance supply and demand. Demand chain management similarly focuses on customer value and relationships. Demand can be classified in different ways, such as individual vs market demand. Demand management is implemented through supply chain transparency and determining unnecessary inventory.

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Demand Management Engr. K M Sabbir Noman November 2019
What is Demand Management?  Demand Management is a lean tool used to identify all demand coming from an external environment, manage it, & input it into a SC within a company.  Demand management is a planning methodology used to forecast, plan for & manage the demand for products & services.
The Goal of Demand Management? Demand Management has Three Primary Goals:  Improve forecast accuracy.  Lessen investment in inventory.  Create a more effective balance between supply & demand.
What is Demand Chain Management? Demand Chain Management (DCM) is the management of relationships between suppliers and customers to deliver the best value to the customer at the least cost to the demand chain as a whole. Demand chain management is similar to supply chain management but with special regard to the customers.
Demand Management Strategy  MTS  MTO  ATO  ETO
What are the different types of demand?  Individual and Market Demand  Organization and Industry Demand  Autonomous and Derived Demand  Demand for Perishable and Durable Goods  Short-term and Long-term Demand (Classification of demand on the basis of time period)
How is Demand Management implemented?  Creating more transparent Supply Chain by ensuring transparency from all suppliers working with a company (Largest to the Smallest).  Companies must determine, which inventory is unnecessary and can be reduced.
Demand Management Overview
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Demand Management
Demand Management

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Demand Management

  • 1. Demand Management Engr. K M Sabbir Noman November 2019
  • 2. What is Demand Management?  Demand Management is a lean tool used to identify all demand coming from an external environment, manage it, & input it into a SC within a company.  Demand management is a planning methodology used to forecast, plan for & manage the demand for products & services.
  • 3. The Goal of Demand Management? Demand Management has Three Primary Goals:  Improve forecast accuracy.  Lessen investment in inventory.  Create a more effective balance between supply & demand.
  • 4. What is Demand Chain Management? Demand Chain Management (DCM) is the management of relationships between suppliers and customers to deliver the best value to the customer at the least cost to the demand chain as a whole. Demand chain management is similar to supply chain management but with special regard to the customers.
  • 5. Demand Management Strategy  MTS  MTO  ATO  ETO
  • 6. What are the different types of demand?  Individual and Market Demand  Organization and Industry Demand  Autonomous and Derived Demand  Demand for Perishable and Durable Goods  Short-term and Long-term Demand (Classification of demand on the basis of time period)
  • 7. How is Demand Management implemented?  Creating more transparent Supply Chain by ensuring transparency from all suppliers working with a company (Largest to the Smallest).  Companies must determine, which inventory is unnecessary and can be reduced.