Demand management
Demand management is a process that is very useful in a business. A manager can easily predict and plan for demand given a particular product. The manufacturer can predict future demands then plan how he will meet the demands by increasing the supplies for that specific product. Managers should always look at different factors before managing demand. The first determining factor is the customer, this the most essential part of the demand management. The requirements and the needs of the customer are very crucial items to check during that process. The other thing is marketing the product where the product demand increases with good marketing. Demand is also influenced through promotion and good prices. In this paper, we are going to discuss the tools of Demand management. Forecasting is among the key tools of demand management (Fattah, Ezzine, Aman, Moussami & Lachhab, 2018). One will tend to predict the future demand of a specific service or product that the company offers. Forecasting is competed by checking at the projected sales, customer behaviour and the current trends. Forecasting also keeps the company on toes in case of unexpected event occurs.
This tool is also unique since it starts the process which moves supply chain performance and inventory levels. Forecasting helps companies to optimize their sales while predicting to make them increasingly reliable. Forecasting involves, development of operational marketing. Procurement and logistics and development. Since forecast can be either wrong or correct on can use the content error in managing demand while providing flexibility and coverage (Li, Pan, Law & Huang, 2017). Having regular measurement, it can help in reducing the error hence making forecasting more reliable. With a more reliable forecasting tool, it means that emergencies and incidents will be eliminated, increased margins and reduced operating costs. Forecasting enables the development of operational and strategic plans which will be pivotal to the business process. Long strategic plans are made including risk assessment and prevention plans, budgeting and capacity planning. Based on my discussion companies must use the forecasting tool in the management of demand to prevent unexpected failures in the future.
References
Fattah, J., Ezzine, L., Aman, Z., El Moussami, H., & Lachhab, A. (2018). Forecasting of demand using the ARIMA model. International Journal of Engineering Business Management, 10, 1847979018808673.
Li, X., Pan, B., Law, R., & Huang, X. (2017). Forecasting tourism demand with composite search index. Tourism Management, 59, 57-66.