The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks.

Question

Quizplus · Accepted Answer

While demand management aims to balance customer demand and supply, achieving zero stockouts and zero safety stocks may not always be feasible or necessary depending on the industry and context. The goal is typically to minimize stockouts and excess inventory while maintaining customer satisfaction.

The Essence of Demand Management Is to Estimate and Manage