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Published in:
2009 | OriginalPaper | Chapter
Demand Planning
Author : Jörg Thomas Dickersbach, Dr
Published in: Supply Chain Management with SAP APO¿
Publisher: Springer Berlin Heidelberg
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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.