3 Capturing unconstrained demand (and not sales)
As we discussed in chapter 2, supply chains need to forecast demand and not sales (Objective). Unfortunately, capturing actual unconstrained demand can be incredibly challenging, if not impossible. This chapter focuses on the second step of the demand planning excellence framework: how to collect accurate demand data.
Remember, unconstrained demand is defined as your clients’ initially requested product, quantity, and delivery date (what, how much, when). Demand is not measured as the number of actual sales which are constrained by inventory at hand (or, more generally, by supply availability). ...
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