Collaborative Planning, Forecasting and Replenishment (CPFR)

Collaborative planning, forecasting and replenishment (CPFR®) is a way to integrate the elements of demand management among supply chain partners. CPFR is: A collaborative process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration Read More

Linkages to Match Organizational Strategy

Planning Demand (fixed high capacity strategy) The organizational strategy is to meet demand to the maximum extent possible by providing the necessary capacity to meet peak demand at any time. Ensuring that capacity will be available requires a focus on planning demand, especially in terms of long-term planning. Such a strategy could be pursued if Read More

Planning Demand

Planning demand is one element of demand management and is not to be confused with demand planning, which is the larger process of forecasting and demand management that is the subject of this entire section. A key output of the demand planning process should be regular updates to the demand plan. The Demand Plan The Read More

Elements of the Demand Management Process

The Demand Management Process is a process that weighs both customer demand and firms output capabilities, and tries to balance the two. Demand management is made up of planning demand, communicating demand, influencing demand and prioritizing demand. Demand management seeks a balance between the extremes of trying to satisfy every demand and satisfying only demands Read More

Define Demand and Demand Planning

Demand A need for a particular product or component. The demand could come from any number of sources (for example: a customer order or forecast, an interplant requirement, a branch warehouse request for a service part or the manufacturing of another product). Demand Planning Using forecasts and experience to estimate demand for various items at Read More