Demand management

Demand management

1. Demand planning.

   • Is a strategy focused on solving a problem, managing material and information flows based on the internal and external processes of the business, in order to respond profitably to market demand.
     • Dependent demand.
       • Includes the materials or intermediate products we need to produce the amount of final product being demanded.
     • Independent demand
       • Products or goods that do not depend on another good to be sold (they are not sub-parts or sub-assemblies) have independent demand.
   • MRP
     • Is a material requirements planning software to manage a company's operations in terms of production activities, warehousing, distribution and delivery of orders at the right time and place to meet customer demand.
   • Backorder
     • backorders are orders that are placed and processed even though the products ordered are not in stock in the warehouse but knowing that our supplier will be able to respond quickly enough to get the product to the customer on time.
   • Safety Stock
     • Stock inventory usually consists of cycle stocks, or the inventory that is expected to be sold within a given period, and safety stock.
   • Lead Time
     • refers to the time that elapses from when a purchase order is generated from a supplier until the merchandise from that supplier is delivered to the customer (it can be an individual or a company store).
   • Bill of Materials
     • functions as a centralized source that contains all the information needed to manufacture a product from the raw materials stage.

2. Design and interpretation of forecasts.

   • What is a logistics demand forecast?
     • Forecasting logistics demand means doing a prior study, especially in the stock and sales sector, to anticipate what will be needed in the supply chain.
       • Functions and elements of forecasts.
         • Increase customer satisfaction, Reduce potential bottlenecks, Optimize operations and Reduce costs and waste.
   • What is the demand forecast?
     • It is known as the estimation of those products that we are going to sell in a determined period of time, where it is forecast based on the information provided by the sales history.
   • Delivery.
     • What is the demand delivery?
       • It is the one offered by companies to make home deliveries of the products that customers buy online or by telephone. This type of delivery is known as last mile.
   • Release management.
     • What is the realese management?
       • When we work with services and we start them for the first time, we will be able to realize that two things arise, failures or improvements for the service, this thanks to the subsequent monitoring of the service after it was "released" .
   • Forecasting approaches.
     • Quantitative forecasts.
       • Use a variety of mathematical models that rely on historical data or causal variables to forecast demand.
     • Qualitative forecasts
       • incorporate factors such as intuition, emotions, personal experiences, and the decision-maker's value system to arrive at the forecast
   • Forecasting systems
     • Demand forecasting estimates future demand for products and services, helping you make informed business decisions.

3. Demand Forecasting.

   • Qualitative Forecasts
     • Are based on subjective feedback, assumptions and opinions of experts and personalities in the industry in question.
   • Quantitative Forecasts
     • These forecasts use mathematical models to analyze a company's past sales performance.
   • Delphi method.
     • The Delphi method is a structured communication technique in which several people considered experts converge to obtain qualitative and precise information on the future of a topic or a common problem.