QUESTION ONE

$[28]$

The demand management process balances the customers' requirements with the capabilities of the supply chain. With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions. The process is not limited to forecasting. It includes synchronizing supply and demand, increasing flexibility, and reducing variability. Reducing demand variability aids in consistent planning and reduces costs. Increasing flexibility helps the firm respond quickly to internal and external events. Most customer$-$driven variability is unavoidable, but one of the goals of demand management is to eliminate management practices that increase variability, and to introduce policies that foster smooth demand patterns.

With this regard,

$1\mathrm{.}1$ Explain the influence of supply and demand on scheduling.

$1\mathrm{.}2$ Discuss the role of forecasting in balancing the supply and demand.