Inventory Planning amp; Optimization：Demand Management.docVIP

Inventory Planning amp; Optimization：Demand Management Inventory Planning amp; Optimization: Demand Management Demand Forecasting amp; Planning February 2003 White Paper About JustEnough JustEnough is a global software company that specializes in an Inventory Planning and Optimization solution. The JustEnough software solution is specifically aimed at organizations in the Retail, Distribution and Manufacturing sectors across a multitude of industries. Using data from the existing ERP or transaction system, JustEnough recovers profit from inventory by making it easier to eliminate excess stock, reduce lost sales and minimize cost and time. For more information: Go to: .justenough4 Email: info@justenough Table of Contents Executive Summary.....................................................................................................1 Demand Forecasting...................................................................................................3 Statistical Demand Forecast......................................................................................4 Consensus Forecasting.............................................................................................5 Demand Planning.........................................................................................................6 Improving the Demand Plan.......................................................................................7 Price Elasticity (E).....................................................................................................8 dDefinition.................................................................................................................8 Elastic versus Inelastic...........................................................................................8 Factors Affecting the Price Elasticity of Demand...................................................9 Product Life Cy