Demand Management Plan

Sample Answer

Demand Management Plan for Vital Greens Juice Company

1. Executive Summary

This demand management plan addresses the critical operational inefficiencies facing Vital Greens, a company specializing in fresh-pressed organic juices. Current business practices are plagued by frequent stockouts and significant product spoilage, directly impacting profitability and customer satisfaction. The root cause of these issues has been identified as a flawed, intuition-based demand forecasting system. This plan proposes a comprehensive overhaul of our demand management process, integrating sophisticated forecasting, dynamic inventory management, and a flexible production scheduling strategy. By leveraging data and adopting a modern, integrated approach, we aim to reduce stockouts by 80%, decrease spoilage by 60%, and improve overall operational efficiency. The recommendations herein provide a clear, phased roadmap to transform our supply chain into a responsive and resilient system, ensuring our ability to meet growing market demand without compromising quality or financial health.

2. Introduction: Business Overview and Problem Statement

Vital Greens is a well-regarded producer of high-quality, fresh-pressed organic juices, serving a network of grocery stores, cafes, and health food shops. Our brand identity is built on freshness and quality, which necessitates a responsive and precise supply chain. However, our rapid growth has exposed a critical vulnerability: our demand management process is not scalable.