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Demand-chain management (DCM) is the management of relationships between suppliers and customers to deliver the best value to the customer at the least cost to the demand chain as a whole. Demand-chain management is similar to supply-chain management but with special regard to the customers. [2] Demand-chain-management software tools bridge the ...
The original meaning of push and pull, as used in operations management, logistics and supply chain management. In the pull system production orders begin upon inventory reaching a certain level, while on the push system production begins based on demand (forecasted or actual demand). The CONWIP is a hybrid between a pure push and pure pull system.
Those parts of a supply chain that directly respond to orders, such as "make to order" or "assemble to order" are, therefore, "demand driven". "Make to stock" supply chains can also be "demand driven" if individual echelon replenishment quantities are determined by the need to simply replace stock that has been consumed by the immediate ...
The central tenet to DFT is the primacy of customer demand in daily execution of the operation. According to Aberdeen Group, "Demand driven manufacturing involves a synchronized, closed loop between customer orders, production scheduling, and manufacturing execution; all while simultaneously coordinating the flow of materials across the supply chain."
[2] [3] A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally".
Demand management in its most effective form has a broad definition well beyond just developing a "forecast" based on history supplemented by "market" or customer intelligence, and often left to the supply chain organization to interpret. Philip Kotler notes two key points: 1.
Supply and demand stacked in a conceptual chain.. A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them [1] to end consumers [2] or end customers. [3]
It has become increasingly necessary to move the de-coupling point in the supply chain to minimise the dependence on the forecast and to maximise the reactionary or demand-driven supply chain elements. This initiative in the distribution elements of the supply chain corresponds to the Just-in-time initiatives pioneered by Toyota. [2]
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