Principles & Mechanics of Demand Planning

Build practical demand-planning capability. Move beyond forecasting alone and learn how Demand Planners make better day-to-day decisions across the supply chain.

This practical 4-hour course gives supply chain and operations professionals a clear understanding of demand planning and the Demand Planner’s role within the broader supply chain and business-planning process.

Follow the end-to-end flow from demand planning through MRP, purchasing, inventory, supplier coordination, and S&OP/SIOP/IBP. Learn how historical demand, customer requirements, external factors, promotions, lead times, inventory requirements, product changes, and planning data become actionable decisions.

Explore the mechanics behind demand planning, lead-time forecasting, MRP ownership, supplier coordination, purchasing, inventory, safety stock, product changes, and participation in S&OP/SIOP/IBP.

Learn through short lectures, practical exercises, planning scenarios, and guided discussions that connect course principles to real workplace decisions.

Who Should Attend

Designed for supply chain and operations professionals whose companies are:

• Growing quickly: outgrowing existing processes and needing a stronger planning function.
• Adjusting after an MRP implementation: experiencing growing pains with a new system.
• Implementing MRP now: needing clarity on roles, responsibilities, and decision ownership.
• Considering MRP for the first time: seeking a practical foundation before implementation.

Course Outline

• Demand Planning Fundamentals
• The Demand Planner’s Role & Responsibilities
• Collaborative Planning, Forecasting & Replenishment (CPFR)
• Demand Deviation & Backcasting
• Lead-Time Forecasting
• MRP Ownership & Demand Planner Responsibilities

Learning Outcomes

By the end of the course, learners will be able to:

• Develop and evaluate demand plans using historical demand, customer requirements, one-time events, external factors, promotions, seasonality, and other demand drivers.
• Apply CPFR, evaluate demand deviation, and use backcasting to test historical planning assumptions and improve future plans.
• Explain how lead times affect planning horizons, demand timing, inventory requirements, and purchasing decisions; evaluate lead-time deviation by SKU and supplier.
• Explain how demand information interacts with MRP and define the Demand Planner’s responsibilities for MRP ownership and available inventory quantity.
• Assess supplier assignments by part number or SKU and make informed safety-stock overrides using A/B/C prioritization.
• Evaluate PO forecast accuracy and determine future material requirements, purchase-order timing, and supplier communication needs.
• Understand purchasing processes including Delegation of Authority (DOA), purchasing cadence, PO requisition requests, new PO transmission, and PO confirmations.
• Plan for NPI and product lifecycle changes, including transitions, phase-ins, phase-outs, substitutions, obsolescence, and brand consolidations.
• Differentiate demand planning from supply planning and identify shortages, excess inventory, timing gaps, capacity constraints, lead-time issues, and other demand-supply imbalances.
• Develop and communicate S&OP/SIOP demand plans by site, product category, and SKU.
• Connect demand, supply, inventory, financial objectives, and business priorities through IBP.
• Evaluate current and projected pipeline inventory in quantity and dollar terms across planning periods.