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Category archives: demand planning

Essential moves to shift from firefighting to optimizing short-term planning

Posted on November 07, 2014 by Leave a reply

Picture this: you are in charge of demand planning at a firm supplying essential base material to various markets, involving OEMs and CP companies. Your challenge is to balance the carefully established forecast with client demand. Since clients usually don’t adhere to the forecast, your task is to address the gap that emerges between your plan and actual demand, and assign the ‘pain’ to either sales or supply. Armed with ‘rules of thumb’ (product demand with high margin prevails over lower margin) and ‘guidelines’ (segment A clients have priority) you pass your judgment. Day after day, you experience that reality requires many more trade-offs than your guidelines allow for. How often are your verdicts met with approval?

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This entry was posted in demand planning, fulfillment, Scenario building, Supply chain optimization on by .
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