ElementsofDemandPlanningElementsofDemandPlanning

Elements of Demand Planning

 Inbasiceconomics,thereistheprincipleofsupplyanddemand.Asaresult,thereisagreatdealoftimespentcollectingandevaluatingdata,lookingatsales,andimprovingtheaccuracyoftheinformation.Inbasiceconomics,thereistheprincipleofsupplyanddemand.Asaresult,thereisagreatdealoftimespentcollectingandevaluatingdata,lookingatsales,andimprovingtheaccuracyoftheinformation.
In basic economics, there is the principle of supply and demand. As a result, there is a great deal of time spent collecting and evaluating data, looking at sales, and improving the accuracy of the information.
Considering that forecasting should be as accurate as possible, this can put the company in a precarious position. That is why most experts now suggest four elements.
Product History
Sales are not necessarily a good indicator. Lost sales can be credited to insufficient stock, poor customer service, or other factors.
Internal Trending
Beyond that time, there is little to no demand. Using the correct data and applying the appropriate statistical models becomes very important.
Technological changes are a huge variable. It can be difficult to determine the next changes and how they will affect how we perform our jobs and needs.
External Trending
Ultimately you want to attract the attention of buyers. Sometimes this means offering a special deal or sale. If people are not buying your product, offering a discount or sale price can stimulate demand.
Promotions
While you will reduce profit, you will be clearing warehouse space that could be used for other products, especially those that have a trend to sell more rapidly or with more volume.
Initiating a discounted sale price will stimulate sales but if the internal structure is not properly geared up, ...
...you may have a problem filling the orders. One of the most important tools in special offers is the calendar.
There are a number of very good programs available as well as companies that specialize in forecasting and demand planning.