A distributor wants to run a promotion on an item that a manufacturer has just introduced. Which of the following processes would provide the most useful input data for evaluating the impact of promotions?
A distributor wants to run a promotion on an item that a manufacturer has just introduced. Which of the following processes would provide the most useful input data for evaluating the impact of promotions?
Demand planning is the most useful process for evaluating the impact of promotions because it involves forecasting future customer demand for the product. This process uses historical sales data and market trends to predict how a promotion will influence demand. Accurate demand planning helps the distributor anticipate changes in sales patterns, manage inventory effectively, and make informed decisions about the promotion's timing and scope, ensuring that there is sufficient stock to meet the increased demand generated by the promotion.
A correct
Demand planning would provide the most useful input data for evaluating the impact of promotions on the item that the manufacturer has just introduced. Demand planning involves forecasting customer demand for a product, and is an important part of the sales and operations planning (S&OP) process. By analyzing historical demand data and current market trends, the distributor can make informed decisions about the timing, duration, and scope of the promotion. Accurate demand planning data is critical for evaluating the impact of promotions on sales, revenue, and inventory levels, and for making adjustments to future promotions based on the results.
B: when you want to run a promotion you need to check if you have the capacity to cover the increased demand after placing the promotion so option B is the correct answer to have a promotion it is a demand planning which needs to evaluate the production schedule to take a decision to have a promotion or not so B is the right answer
Demand planning would provide predictive insights into how the promotion is likely to influence customer demand, which is key to understanding and preparing for the promotion's impact.
A. Demand planning.