Question

GLOBAL MACROTRENDS AND THEIR IMPACT ON SUPPLY CHAIN MANAGEMENT

Ch. 11 Mitigating Demand-Driven Imbalance

There are four separate demand attributes that can lead to demand-supply imbalances. Are they all the same or should a business be more willing to allow one type over another? What factors go into that decision?

Answer 1

The four demand attributes are not the same and a business should be more willing to allow one type over another since demand attributes focus on generating customer demand and give weighatge to a lot of factors which affect an organization before generating such demands. Demands to be generated are based on the company wide policies, procedures and strategies formulated to implement in the business to increase organizational efficiency and effectiveness and generate right demand and create a loyal customer base as well. This decision depends upon which type of demand is to be generated since each gives different results. Factors such as organizational profits, strategy formulation, customer preferences, products availability, market forces, competitors strategy, employees strengths and limitations, company's point of differentiation etc go into that decision to select particular demand attributes.