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Demand management in MPC system


By Anonymous - Posted on 04 February 2012

The position of the demand management in the MPC is shown in the above fig.
It is the key connection to the market place in the front end of the MPC system.

The Demand management is a gateway module in MPC system, providing the link to the market place, SOP & MPS. The communication between DM & market place are two way communications - gathering information from the customer & informing customer the status of the order.

The information provided to SOP is used to develop sales & operation plan covering a year or more in duration at a high level of aggregation. Both the sales order & forecast information is provided to the MPS system. It is in the MPS system that short-term, product specific manufacturing plans are developed & controlled as actual demand becomes available and information is provided to the provide delivery promises and order status to customers.

Planning & Control
The planning part of manufacturing planning & control involves determining the capacity that is required to meet the actual future demands. The control part determines how the capacity will be converted into products as the orders come in. The company executes the plan as actual demand information becomes available. The control function determines how the company will modify the plans in light of forecast errors and other change in assumptions.

Forecast & Plan
The difference between the patterns of demand & the response by the company points out the important distinction between forecast & plans. In demand management, forecasts of the quantities & timing of customer demand are developed.  These are estimates of what might occur in the market place. Manufacturing plans that specify how the firm will respond are based on these forecasts.

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