Final answer:
Planning demand in supply chain planning involves forecasting product demand, creating a demand schedule, and graphing demand curves. It also includes identifying factors that affect demand, which may lead to shifts in the demand curve.
Step-by-step explanation:
Planning demand is a critical supply chain planning activity that involves forecasting the quantity of a product that consumers will purchase. Step 1 in the planning process often requires developing a demand and supply model to analyze the market before a certain event. This includes drawing the initial demand curve (D0) and supply curve (S0) to represent the existing relationship between demand and supply.
Creating a demand schedule and a corresponding graph allows one to visualize the demand relationship at various price points. Once the demand model is established, one can identify factors that affect demand, such as changes in consumer tastes, income levels, or the prices of related goods. These factors may shift the demand curve, leading to an updated demand schedule.
Graphing demand curves and shifts is an essential step in understanding how the market adjusts to various influences. By modeling these relationships, businesses and students are better equipped to predict market behavior and make informed decisions.