What is demand planning? what are different aspects of demand planning?
Answers
Answer:
Explanation:
From reducing costs to keeping consumers happy, demand forecasting is an essential element of inventory planning and management. Trade Gecko's new demand forecasting functionality uses historical data to pull out insights into future demand by product, variant, warehouse location, etc. so you can plan according
these aspects of demand planning include the following:
Statistical Forecasting - Demand planning exercises usually start with statistical forecasting. While there are various methods of statistical forecasting, with each of them catering to behaviors shown through products and markets. These models include univariate, linear, multivariate, season, and others. Determining which model to use can be a complex and time consuming process, but it is essential in order to ensure for a beneficial outcome.
Consensus Planning - The demand planning tool should be able to support consensus planning features. This is due to demand planning rarely being the work from a single department. Demand planning is a collaborative effort between various departments and it is important to make sure that the tool captures input from everyone.
Life cycle Management - Planning for demand based on the life cycle of the product can be complex, but not impossible. This may not be an introduction of a new product or phasing out of existing products, but rather it be replacing an existing product with a new product or multiple products. Therefore, product substitution should be a vital aspect within demand planning.
Utilizing demand planning can aid your production facility tremendously and it can be made much simpler through utilizing a software that is capable. PlanetTogether’s advanced planning and scheduling software offer demand planning components that can give an accurate representation of your future demand.