Two Dimensions of Demand

Suppose you were guaranteed that a specific investment stock will increase in value by 50% but you weren't told whether it will happen in 5 months, 5 years or 5 decades?

How much would this information be worth to you?

Not much, right?  Why?  Simple – you need to know both the percentage increase (quantity) and the timing (when). is very similar. The purpose of the demand planning is to anticipate how much of a particular product your customers will want and when they will want it. So, to do a proper job of demand planning, you need to consider two equally important dimensions:

  • quantity (how much?); and
  • timing (when?).

The purpose of the demand planning process is to predict BOTH the quantity and timing. You can't have one without the other.

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