Professional Documents
Culture Documents
20
15
D
F
10
0
1
9 10 11 12 13 14 15 16 17 18 19 20 21
Demand Management
Actively seeks to ensure that the customer demand
profile as an input to the demand-planning process
is as smooth as possible in order to make supply
chain operations easier.
In other words, the company is not only passively
process the given demand, but is trying to reduce
demand volatility, or improving demand stability.
Thus, demand forecasting is REACTIVE, while
demand management is PROACTIVE to customer
demand.
Demand
Forecasting
Production
Production
Planning
Delivery
EVENT MANAGEMENT
Promotion
Special offers
Buy one get one
Happy hour scheme
End of season sale, etc
1600
3000
3200
3800
2200
2200
Costs
Material costs
Holding cost
Stockout cost
Hiring & training
Layoff
Labor hours (hrs)
Regular time
Overtime
Subcontracting
10/unit
2/unit/mth
5/unit/mth
300/worker
500/worker
4/unit
4/hour
6/hour
30/unit
Ht
Lt
Wt
Ot
It
St
Ct
Pt
80
1000
15
65
1983
2583
65
1567
2583
65
950
2583
65
267
2583
65
117
2583
65
500
2583
Financial Performance
Total costs over the planning period: $422,275
Material costs
Labor costs
Inventory holding costs
Stockout costs
Layoff costs
Hiring and training costs
Overtime costs
Subcontracting costs
Revenue: $640,000
Profit: $217,725
3000
2400
2560
3800
2200
2200
Ht
Lt
Wt
Ot
It
St
Ct
Pt
80
1000
15
65
610
2610
65
820
2610
65
870
2610
65
320
2610
65
90
2610
65
500
2610
Financial Performance
Costs
$421,915
Revenue $643,400
Profit $221,485
1600
3000
3200
5060
1760
1760
Ht
Lt
Wt
Ot
It
St
Ct
Pt
80
1000
14
66
2047
2647
66
1693
2647
66
1140
2647
66
1273
2647
66
387
2647
66
500
2647
Financial Performance
Costs
$438,857
Revenue $650,140
Profit $211,283
Promotion
al Price
Promotion
al Period
Increase
in
Demand
Percent
Forward
Buy
Profit
($)
Average
Inv.
40
40
217725
895
40
39
January
10%
20
221485
523
40
39
April
10%
20
211283
938
40
39
January
100%
20
242810
208
40
39
April
100%
20
247320
1492