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What is Demand Management

What is Demand Management?

When we talk about demand, we are referring to both the market's desires and the specific orders received by our operations. The overall market demand plays a significant role in determining our business's demand, but it is the orders that directly impact the operations that operations personnel truly focus on. While some may find the concept of demand management unfamiliar or unnecessary — after all, customers come and order as they please — proactive operations managers understand the importance of strategically managing demand to optimize operations efficiency.

Keywords: demand, market, orders, operations, demand management, production capacity, proactive, efficiency


  1. Why is demand management essential for operations?

    • Demand management allows operations managers to effectively plan and allocate resources, optimize production capacity, and minimize disruptions caused by fluctuating demand.
  2. How does demand management differ from market demand?

    • Market demand refers to the overall desire for a product or service, whereas demand management involves strategically influencing and responding to specific orders received by an organization to ensure efficient operations.
  3. What are the benefits of proactive demand management?

    • Proactively managing demand enables organizations to improve customer satisfaction by minimizing wait times, optimize resource utilization, streamline production processes, and maintain a competitive edge in the market.