Demand Management
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Understanding, forecasting, segmenting and shaping demand
When it comes to matching production with customer demand, the biggest headaches are often self-inflicted. To meet sales targets, marketing pushes end-of-quarter promotions, training customers to wait for discounts and stockpile product. High-volume order policies decrease order frequency and further contribute to demand volatility. Sales and operations managers "tweak" or outright ignore statistically-based forecasts. The factory runs large batches to maximize equipment utilization then it has to shut down production lines for weeks or even months when sales fail to materialize.