Demand management involves which of the following undertakings?

Demand management involves which of the following undertakings?
A . Adjusting capacity to support expected demand
B . Engaging in activities associated with customer relationship management
C . Creating higher customer demand by improving performance in areas such as lead time and service levels
D . Understanding events and managing activities that could influence future demand

View Answer

Answer: D

Explanation:

Demand management involves a proactive approach to understanding and influencing demand patterns.

Here’s how:

Event Analysis: It includes analyzing events such as market trends, economic indicators, and competitive actions that could impact future demand.

Demand Shaping: Managing activities like promotions, pricing strategies, and marketing campaigns to shape demand in a way that aligns with supply capabilities.

Customer Insights: Gathering and analyzing customer feedback and preferences to anticipate changes in demand.

Coordination: Collaborating with different departments (e.g., marketing, sales, and operations) to ensure alignment and responsiveness to demand changes.

Effective demand management requires a comprehensive understanding of various factors that influence demand and actively managing these elements to optimize supply chain performance.

Reference: Vollmann, T. E., Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2005). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill.

Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.