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Demand Planning

In: Supply Chain Management with SAP APO¿

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  • Jörg Thomas Dickersbach

Abstract

The result of the demand planning process is the establishment of independent requirements which will trigger the planning activities as distribution, production and procurement planning. Usually a sales fore cast is the key input to the demand plan. This sales forecast is consolidated and checked regarding plausibility, probably checked against a statistical forecast and corrected according to the experience of the planner before releasing it for the subsequent planning steps. Figure 4.1 shows this process for a very simple supply chain with global demand planning and single-sourcing local production planning: The monitoring of the forecast accuracy and a feasibility check against the planning constraints (e.g. capacity) are further common process steps. Depending on the business requirements there might be many others.

Suggested Citation

  • Jörg Thomas Dickersbach, 2009. "Demand Planning," Springer Books, in: Supply Chain Management with SAP APO¿, chapter 4, pages 33-84, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-92942-0_4
    DOI: 10.1007/978-3-540-92942-0_4
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