Demand Management

Demand Management

1. DESIGN AND INTERPRETATION OF FORECASTS

   • Release 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" .
   • DEMAND DELIVERY
     • It is the one offered by companies to make home deliveries of the products that customers buy online or by telephone.
     • 5 POINTS OF HOME DELIVERIES WITH THE DELIVERY SERVICE
       • Sustainable mobility for home deliveries. Efficient waste management during home deliveries. Efficiency in delivery routes and home deliveries. Optimize the supply chain in response to the demand for delivery services. Improve the customer experience in home deliveries
   • Forecasting Approaches: Quantitative and Qualitative
     • 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. Demand forecasting includes detailed data, historical sales data, questionnaires and more

2. Demand Planning

   • 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
   • MPR
     • 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.
     • Advantages of MRP
       • One of the benefits of MRP for the logistics company is to be able to have real-time supply chain information. This means making decisions quickly in case of any unexpected situation so that the product arrives from the production center to the destination in the estimated time.
     • Disadvantages of MRP
       • For both large companies and SMEs, it should be noted that these programs do not always take into account the capacity of the personnel available for the distribution of tasks. They also do not allow the management of all logistical aspects of the business from a single interface
   • 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
     • The 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). Managing this concept is essential for the organization of all processes throughout the entire supply chain.
   • Bill of Materials (BOM)
     • A bill of materials (BOM), also known as a product structure, is a list of all the items needed to build, manufacture, or repair a product or service.

3. DEMAND FORECAST

   • Qualitative Forecasts
     • These forecasts use mathematical models to analyze a company's past sales performance.
   • Quantitative Forecasts
     • Qualitative methods are based on subjective feedback, assumptions and opinions of experts and personalities in the industry in question.
   • Qualitative methods
     • Delphi method
       • Is a technique that relies on the experience and expertise of the company's top management to reach a consensus in order to forecast demand.
     • Executive opinion
       • Is a technique that relies on the experience and expertise of the company's top management to reach a consensus in order to forecast demand.
     • Historical consumption data
       • Historical Consumption the most reliable measure for predicting and quantifying future demand, provided stocks have not been depleted and consumption records are reasonably accurate.