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2.

Manage demand to improve synchronization in a supply chain in the face of predictable


variability.

To manage demand with the goal of maximizing profit, companies must use pricing and promotion
decisions in concert with supply planning. The timing of promotions can have a tremendous impact on
demand. Therefore, using pricing to shape demand can help synchronize the supply chain.

https://scm.ncsu.edu/scm-articles/article/lessons-in-demand-management

Aggregate planning is a process by which a company determines planned levels of capacity, production,
subcontracting, inventory, stockouts, and even pricing over a specified time horizon. The goal of
aggregate
planning is to build a plan that satisfies demand while maximizing profit. Aggregate production plans
facilitate matching of supply and demand while reducing costs.

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