ABSTRACT

This chapter discusses Demand and Supply Chain Management (DSCM) model to formulate a number of fundamental questions with regard to the design of a supply chain. DSCM has given rise to new functions where managers carry complete responsibility within an organisation for the goods flow that emanates from the purchasing, manufacturing, distribution and reverse logistics processes. Strategic demand and supply chain management starts with a description of the needs and wishes of the final customer of a product or service. The success of a supply chain’s logistical strategy will depend on various factors, including the logistical infrastructure, its control system, its information system, how it is organised, and the performance indicators it uses. The supply side of Efficient consumer response involves rapid replenishment of products and related information through the entire supply chain, driven by actual sales and expected changes in consumer demand and at a cost that is consistent with the value provided to the consumer.