How are demand management and production planning linked to logistics planning?
A customer’s demand for a good is very important in the supplier’s plans for meeting the needs of his client. The nature and urgency of the client’s needs are evaluated and this helps the supplier in coming up with plans to meet the requirements of the customer. Proper management of demand dictates the success of the supplier and thus demand needs to be carefully analyzed to come up with proper logistics plans. The demand dictates the supply chain option to be adopted to