Demand Management and its Sub-Processes for Supply-Demand Matching

This text covers various topics related to demand management, including its sub-processes for matching supply and demand, customer service, logistics, and the bullwhip effect. It also includes a calculation example for EOQ and references for further reading.

1) Synchronizing and forecasting is what demand management is about.. It comprises of
six sub-process which aimed at designing of an operational system for matching
supply and demand and the processes are very strategic.
2) Food
Household appliances
Trips and packages
Health
Health and Food- Consumers would prefer food and health services simply because
of the physical risk which occurs when something is wrong and unpleasant.
They don’t consider their values since this can have impact on their life.
.
3) Customer service basic aspects-Services that are very common to customers.
These services motivate customers and even ensures that they stick with the
company.
Customer service activities which are inevitable. -It’s all about receiving, sorting
tasks and also handling items within the store. Companies modernize them so as to
reduce the cost of servicing customers.
Promoting customer service-It’s all about activities and works and on how these
are
being implemented since these services require high costs, hence resulting in an
increase on sales.
Customers additional service- -Is the use of computer systems within the store. It
enables electronic payments and keeping various.
4) Quantitativity - Is the expression of the measure as an objective value.
Visibility- During the measuring process the impact of the measure are readily
apparent to all involved.
Understanding it is easy-What is being measured can be seen easily.
Use economies of effort- Advantages of measure outweigh the costs of collection.
Facilitate trust- It validates participation among several parties.
5) Coordination and cooperation- These processes leads to a decrease in costs and
an increase in the level of services.
Centralization- creates an efficient network for various transportation services.

Consolidation-promotes consolidated delivery in harmony hence facilitating
logistics activities.
6) Fourth party logistics is about the external companies being used to perform logistics
functions that traditionally have been performed by organizations. It aids in
intensifying global competition.
7) For logistics activities to be efficient, a good transportation system must be provided,
and this reduces operation costs, promote service quality and ensure better
competition.
8) Bullwhip effect can be reduced by reducing knots of supply chain so as to ensure
accuracy of information. It can be reduced by using efficient supply chain
management system.
Seasonal variations in demand and supply can place great pressure in growing
business. Supply shock can break fragile supply chains causing input prices to rise
and stockouts. Peak season demand result in pressure as business struggle to satisfy
customers expectations with limited stock.
9) EOQ=√(2RA/S)
=√ ¿ (2*3600*2000)/5.76)
=1,581
No. of pallets required= R/Q
=3600/160
=23
Ordering cost=A(R/Q)
=2000*23

=46,000
Total cost=(Q/2)*S+A*(R/Q)
=80*5.76+46000
=46,461
No of orders processed/year=(R/working days/year)*365
=(3600/288)*365
=4,563
Expected time between orders=(working days/year)/No of pallets required
=288/23
=13
References
H.F. Guo, X.Y.Huang, impact of vendor or Managed Inventory on the Bullwhip Effect, Control
Engineering,1 (2007)111-114.
R.Q.Chen, S.H Ma, Production and operations management, third ed, Higher Education Press,
Beijing,2011.