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Demand management is managing demand. It is forecasting demand for the future and developing current frameworks to solve future demand situations. Demand management is something that is practiced by most companies without knowing that they are doing something called such.
Demand management is also controlling demand. When demand is better controlled there is no recession in the economy. Escalating demand leads to lack of supply of goods and services. A lack of supply of goods and services stalls growth. Low growth hits-back at the economy. Companies who hired in excess are forced to lay-off their employees because their projected growth looks weak.
In manufacturing industries, the definition of demand management is different. It is forecasting demand. When a manufacturing industry feels that its production capacity is going to increase, it will build the necessary groundwork to meet this need.
Forecasting a demand is not an easy process. It takes a lot of quantitative techniques to make an informed decision.
Demand management can also mean pro-active resolution of a business need. A business will have to deal with different work initiatives. In the future the work initiative might increase in size and scale. To deal with this the business might need to deal with the constraints blocking this need.
Between 1950 and 1970, demand management had its best run. Later-on, there was not much thought in this regard. Demand management is often considered an important economic activity to beat recession. Without which, the world may not be prepared for a rise or fall in demand of goods, services, and resources.
