7. Demand Management

7. Demand Management

1. Balancing Supply and Demand

2. Traditional Forecasting

   • The amount of product that will be purchased by consumer or end users. + "where", "when"
   • Thread for all forecast= They will ultimately be wrong

3. Forecast Errors

   • CFE
     • MSE
   • MAD
   • MAPE

4. Fulfillment Models

   • Collaborative Planning, Forecasting, and Replenishment
     • CPFR Model:Aimed at achieving true supply chain integration.
   • Channels of Distribution
     • Sorting out
       • Accumulating
         • Allocating
           • Asssorting
   • Direct-to-Customer (DTC) Fulfillment
     • Integrated
       • Dedicated
         • Outsourced
           • Drop-Shipped
             • Store
               • Flow-Through

5. Estimate and manage customer demand and use this information to make operational decisions.

6. S& OP = Sales operation planning which is the marketing and operations plan to set goals and developing strategies. Through Forecast

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