July 17, 2023
Why do Demand Planning?
In this video, we discuss the importance of demand planning and how it can help businesses improve their supply chain and customer service levels. We define supply chain activity lead times and customer service levels, and we show how demand planning can be used to optimize these factors.
Demand planning is the process of forecasting future demand for products or services. This forecast is then used to make decisions about inventory levels, production schedules, and marketing campaigns.
Demand planning is important because it helps businesses to ensure that they have the right amount of products or services available to meet customer demand. This can help businesses to improve their customer service levels and avoid stockouts.
Supply chain activity lead times are the amount of time it takes to buy, make, and distribute products. Customer service levels are a measure of how satisfied customers are with the service that they receive.
Demand planning can help businesses to optimize their supply chain activity lead times and improve their customer service levels. This can be done by forecasting future demand accurately and using this forecast to make decisions about inventory levels, production schedules, and marketing campaigns.
