CHAPTER 5

Planning Demand and Cash

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Why does a business need to plan demand? The answer to this question is found in the economic uncertainty, risk, and mitigation graphic (see Figure 5.1):

 

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Figure 5.1 Economic uncertainty, risk and mitigation

Demand Planning

The demand plan is a realistic view of future sales based on all known activities and trends. It’s used by sales and marketing to focus on or change the commercial direction of the business. It is also a formal request for the supply chain to make the relevant materials and schedule capacity ...

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