Defining Demand Management and Demand Forecasting: What Demand Management Is

Due to recent technological advancements, companies have experienced substantial changes to their production, and a dilemma has emerged, which may be solved with demand management and demand forecasting. With the use of new equipment, managerial techniques, and business strategies, businesses could produce more products and services with an even greater efficiency than ever before. They are still not confident about the volume of demand as well as the potential future changes to it. As a result, the overall efficiency of each individual company is not at its maximum level (Ma et al., 2017). However, there is a method that is used to solve this problem, and it is referred to as demand management. The simplest definition of demand management is a control of the consumer demand for services and products produced by a firm ("Demand Management Meaning," 2017). However, the theoretical framework that it is based on is significantly more complicated, and it offers a wide variety of advantages and tools for a company, especially in terms of risk management and diminishing. Demand management includes both the collection of internal projects and ideas and external factors and the environment (Romano, Grimaldi, & Colasuonno, 2016). Besides, it incorporates the analysis of current and former activities to produce a valid analysis of future activities, which are characterized by a certain degree of certainty. Therefore, demand management is used to affect and improve the core needs of a business: the production of goods and services.