Demand is the consumer's willingness to purchase goods or services and at a given price.
Simply put, knowing the market demand for your product helps you tailor your production accordingly to maximize revenue and minimize cost.
- Demand management is the process of tracking and balancing business capabilities with consumer requirements.
- Demand planning is a practice that helps organizations tailor capacity to ensure specific products can be delivered in full measure to satisfy consumers.
- Demand forecasting is the process of using historical data and other information to estimate customer demand over a certain period of time in the future. It’s an essential element of demand planning.