Demand Planning

Demand Planning

1. Operations Management

   • Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.
     • Where are the OM Jobs?
       • Technology/methods, Facilities/space utilization, Strategic issues, Response time, People/team development, Customer service, Quality, Cost reduction, Inventory reduction & Productivity improvement
   • Organizing to Produce Goods and Services
     • Essential functions: 1.- Marketing – generates demand 2.- Production/operations – creates the product 3.- Finance/accounting – tracks how well the organization is doing, pays bills, collects the money
   • Sustainability
     • Sustainability refers to an organization’s ability to strategically address current business needs and successfully develop a long-term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations.
       • Environmental sustainability Social sustainability Economic sustainability

2. Supply Chain

   • Set of companies ( Suppliers, Manufacturers, Dealers and Retailers/Wholesalers).
     • Part of Supply Chain Plans, implements and controls Flow and Storage (Efficient) Goods, Services and Information From Origin to consumer Costumer requirements
   • Supply Chain Operations Reference Model (SCOR Model)
     • Planning, Procurement, Manufacturing, Deliveries, Return of Merchandise
   • Key Business Processes In the Supply Chain
     • 1.- Customer relationships Management 2.- Customer Service Management 3.- Demand Management 4.- Oder Fulfillment 5.- Manufacturing Flow Management 6.- Procurement or Purchases/ Product Development Marketing 7.- Returns

3. Plan Demand

   • Production Systems
     • Production systems are used in various types of business. A production system uses resources and inputs to transform them into some kind of good or service. Inputs can be raw materials, a customer or a finished product from another system.
   • Understanding Goods and Services
     • A good is a physical product that you can see, touch, or possibly consume.
     • A durable good is a product that typically lasts at least three years.
     • A non-durable good is perishable and generally lasts for less than three years.
     • A service is any primary or complementary activity that does not directly produce a physical product.
   • Customer Service in the Supply Chain
     • Service management integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters.
     • A service encounter is an interaction between the customer and the service provider.

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