Logistics & Supply Chain
What is Demand Planning (DP)?
Forecasting future customer demand using statistical models, market input, and history.
In SAP it is done in APO DP or IBP for Demand. The consensus forecast is released to supply planning or MRP as planned independent requirements. Forecast accuracy metrics are typical UAT validation points.
Related terms
SAP Integrated Business Planning
SAP's cloud solution for sales and operations planning, demand, supply, inventory, and response planning.
Sales and Operations Planning
A monthly cross-functional process aligning demand, supply, and financial plans at an aggregated level.
Planned Independent Requirement
A forecasted demand quantity for a finished product used by MRP to plan production before orders exist.
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