Demand planning is planning for demand.

No, truly! Businesses plan and discuss customer demand, anticipating inventory needs and over-customer satisfaction. The various factors that go into this can include:

  • Historical sales
  • Market trends
  • Seasonal data
  • Production ability
  • And current sales.

This planning stage is vital to ensure demands are met while not causing fundamental breaks in the company by overpromising or underdelivering. This helps drive profit and customer satisfaction and avoids overstocked and obsolete inventory.

I wish my local grocer would encourage the eggnog supplier to do this. They always run out and leave me stuck with pumpkin eggnog. WHO LIKES PUMPKIN EGGNOG? MORE LIKE EGGNOT!