Supply Chain and Demand Model Essay Example | Topics and Well Written Essays - 250 words

Supply Chain and Demand Model - Essay Example Notably, the supply chain eliminates unsuitable suppliers and consumers that demean effective supply chain management. In a demand driven supply chain, consumers control the supply chain since the supply must provide everything that the consumer needs. Indeed, a demand-driven network forces the supply chain to produce new products at a speed defined by the demand model (Versloot, 2013). To enhance sustainable profits, an organization must ensure that its supply responds to demand. Since the supply chain is nonlinear, suppliers focus on the actual demand and purchase patterns as defined in the demand model (Versloot, 2013). Supply meets demand forecast in lead times. However, there is a need to adjust the supply at each level of the supply chain since actual demand is different from forecasted demand (Versloot, 2013). Notably, the relationship between supply chain and the supply and demand model determines the prices and quantities of products in the