ABSTRACT

Earlier chapters have stressed the importance of finding out what customers want or need. This chapter is about developing strategic programs to meet those needs effectively and efficiently. The entire supply chain, from retailers upstream through the manufacturing and originating groups, must decide how to best allocate their resources. Industries, and companies within industries, use different demand management strategies; some use multiple strategies to fit different product and market requirements. As you read this company profile and this chapter in the book, think about these questions:

• How does a company find out what the demand for its product should be? • How much extra capacity should a company have (more than its expected demand)?