ABSTRACT
The term demand chain rather than supply chain has often been used to emphasize that the focus must be on understanding customer needs. Customers pay for all their work. Forecasting demand is usually the responsibility of the sales department. The supply chain should not second-guess the forecast when deciding what to make or buy; otherwise, there will be confusion over accountabilities, accusations about the poor forecasting, and recriminations about the resulting breakdown in customer service or excess inventory. Correlated forecasts are in use extensively, linking product demand to economic factors. Sales were to some extent seasonal and some products were fashion items with new ranges introduced each season. The total demand is the addition of actual orders and forecast. Many businesses need to be able to tell customers when they can expect to receive their order. If there are only a small number of product options, it is worth scheduling each of them separately.
