Final answer:
Internal balancing methods adjust a company's internal processes to align supply with demand, such as inventory management and production scheduling. External balancing methods influence demand to match supply, for example through marketing campaigns or outsourcing production.
Step-by-step explanation:
Internal vs External Balancing Methods
Managing supply and demand imbalances is crucial in any business to ensure that the production of goods matches consumer needs while maintaining operational efficiency. The purpose of internal balancing methods is to adjust the company's internal processes to align supply with demand. This can involve strategies such as inventory management, production scheduling, and capacity planning. On the other hand, external balancing methods are focused on influencing the demand to match the supply. This could include marketing campaigns to boost demand during low seasons or outsourcing production to meet unexpected increases in demand.
The distinction between these methods lies in their approach; internal methods are about optimizing what the company can control within its operations, while external methods involve interacting with market forces and external stakeholders to balance supply and demand.