Register now or log in to join your professional community.
Supply and demand theory is measured as electricity between demand of a product based on consumer behavior and to offset that demand through supply base. (Supply and Demand Theory)
To rationalize supply theory, there are many independent modules such as min max, reorder point, periodic inventory system.
These systems are in place to measure supply in terms of replenishment time before stocks run out due to demand in upstream supply chain management.
Precisely, there are many demand based modules such as distribution requirements planning, materials requirements planning, and master production schedules.
These are dependent demand system and they measure demand on planning horizon.
Nevertheless, both the independent supply system and dependent demand system can be use to offset demand with accurate supply base in a given lead time, and lead time is the initiative starting point to align supply with demand.
