Question

In: Operations Management

Customer demand is the only important factor that should be taken into consideration during the planning...

Customer demand is the only important factor that should be taken into consideration during the planning stage of production. Justify your stance and explain why.

Solutions

Expert Solution

During the Planning stage of Production, Customer Demand is the Only important factor that should be taken into Consideration, as these are only Customer for them we are going to Produce. to confirm this we should have a Look on the other factors affecting Planning, these are-

  1. Current Economic Conditions.
  2. Priorities.
  3. Budget.
  4. Organizational Responsibilities.
  5. Ethics.

If we look at all these factors, we find that without Customer Demand, no factor is of use. it is the most Important factor in the Planning stage of Production for any Product Line.

Part of serving customers effectively is learning how to predict what they will want, how much of it and when, in order to serve customers well while still making a profit. Otherwise Planning process uses data and analytics to predict as precisely as possible the customer demand for a specific period in order to satisfy customers, minimize inventory costs and optimize cash flow. When cash flow is good, so are our salaries, and we can also increase our impact on the community by offering additional or better paying jobs, all of which contribute to our reputation and draw in potential customers.

Customers demand, whether the customers are members of the public or other organizations, is crucial to the success of any business since it represent its fundamental source of revenue. It is, therefore, crucial that businesses create a sense of loyalty among customers for their brand.Repeat customer is crucial for the success of any business, and losing customers is considered a reliable measure of failure since without customers there can be no business.

Keeping customers satisfied also means that they are likely to bring more customers to a business by word of mouth or verbal referral, especially if their loyalty is rewarded with discounts and free gifts.One of the key ways to keep customers loyal and satisfied is to listen to them and respond to their demands.

Customer Demand is the Central Pilar in the Planning phase of Production, as without this we cant move further.


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