Demand planning cycles

In this video, we will discuss the importance of the cycle in demand planning. We will explain what the cycle is, how to determine the right cycle for your organization, and why it is important to get the cycle right.

Demand planning is the process of forecasting future demand and making decisions based on that forecast. The cycle is the frequency with which the demand plan is updated. The cycle is important because it determines how quickly you can respond to changes in demand.

For example, if the cycle is one month, then you can only make changes to the demand plan once a month. However, if the cycle is one week, then you can make changes to the demand plan every week.

The right cycle for your organization depends on the nature of your business and the lead times of your supply chain. If your business is very dynamic and demand changes frequently, then you need a shorter cycle. If your business is more stable and demand changes slowly, then you can have a longer cycle.

If you get the cycle wrong, it can have a significant impact on your business. If the cycle is too long, you may not be able to respond to changes in demand quickly enough. If the cycle is too short, you may be wasting time and resources updating the demand plan unnecessarily.