Loading
Utility Header Logo
Plex Community
Change Country Site SelectionChange RockwellAutomation.com site selection to a different country, region or language
US | EN
Plex, a Rockwell Automation Company logo
Products
Manufacturing Execution System (MES)
Manufacturing Execution Suite (MES) is a comprehensive manufacturing software solution that provides real-time, paperless production management to drive enterprise-wide compliance, quality, and efficiency.
Quality Management System (QMS)
Quality Management System (QMS) is a cloud-based digital quality solution for manufacturers that standardizes and automates quality documentation, processes, and measurements.
Enterprise Resource Planning (ERP)
Enterprise Resource Planning (ERP) is a full-featured, scalable, cloudbased ERP that automates front- and back-office processes.
Supply Chain Planning (SCP)
Supply Chain Planning (SCP) combines data from your Plex ERP and multiple departments across your business to sync up demand and supply planning to improve inventory accuracy and production management.
Connected Worker
Connected Worker empowers frontline manufacturing teams with real-time digital tools to improve productivity, reduce errors, and enhance collaboration. It connects your people, to purpose, people, productivity, and processes to drive continuous improvement and workforce agility on the shop floor.
Production Monitoring
Production Monitoring provides seamless connectivity to machines on the plant floor, delivering transparent, real-time operational KPIs and dashboards to drive continuous improvements.
MES Automation & Orchestration
MES Automation & Orchestration connects your Plex MES to the plant edge to control information flow, processes, and workcenter setup adding efficiency, saving costs, and eliminating manual errors.
Asset Performance Management (APM)
Asset Performance Management (APM) combines process, operational, and machine-level data through highly visual dashboards to proactively monitor machine and plant health to ensure optimal uptime, throughput, and maintenance needs.
Finite Scheduler
Finite Scheduler is an advanced production scheduling tool that helps manufacturers optimize resources, reduce bottlenecks, and improve on-time delivery. It enables dynamic, constraint-based scheduling to align operations with real-world capacity and demand
Platform
Smart Manufacturing Platform Overview
Discover how our integrated platform connects, automates, tracks, and analyzes your operations.
Cloud Infrastructure & Security
Enterprise-grade cloud infrastructure with industry-leading security and compliance.
Mobile Application
Access critical manufacturing data and controls from anywhere with our mobile apps.
Availability & Performance
Industry-leading uptime and performance with 99.5% availability guarantee.
Manufacturing Automation
Seamless integration with Rockwell Automation and other manufacturing systems.
Industries
Aerospace Auto and Tire Food & Beverage Industrial Manufacturing Plastics & Rubber Precision Metalforming
Plex Interactive Demo
INTERACTIVE DEMO
Plex MES for Automotive

Gain Real-Time Visibility and Control of Your Operations

Try Now
Resources
All Resources Success Stories Analyst Reports Knowledge Articles Demos Blog
Plex Generic Dark Background
Analyst Report
2025 Gartner® Market Guide for Manufacturing Execution Systems
Read More
TALK TO US
SEE A DEMO
Log In Plex Manufacturing Cloud Plex Classic
TALK TO US
SEE A DEMO
Blog
Recent ActivityRecent Activity

Demand Planning Models in Today’s Manufacturing Environment

Share This:

LinkedInLinkedIn
XX
FacebookFacebook
PrintPrint
EmailEmail

As supply chain issues reverberate around the globe, consumers are noticing shortages, lines, and long lead times on popular products. But for the demand and supply planners developing forecasts and schedules that drive the supply chain, this new reality is upending how they operate their businesses.

Driven by disruption, supply chain professionals are scrambling for solutions and striving to leverage data to craft a response that works. However, many are finding that while the traditional models used for demand planning are valid, the volume of data in today’s complex supply chains means the ecosystem is becoming unmanageable.

Traditional Demand Planning Models

Traditional demand planning models generally fall within two types: survey and statistical.

Survey

Survey models rely on expert opinion, consumer opinion, and experimentation within the market. The rationale is that expert opinion will render a reliable look at future demand that allows for projections and forecasts. Survey models come in several flavors and include:

Expert Opinion

By assembling a panel of experts, or in some cases a mix of experts and consumers, a model based on expert opinion will be based on regional or localized demand data for that area. It relies on sales being very close to the consumer and understanding the “mood” or trend in many cases.

Delphi Method

The Delphi Method also relies on experts, and each opinion is shared with others on the panel. This method is a consensus-driven demand model with views shifting up or down based on input from others until an agreement is reached.

Statistical

Statistical demand models use large complex data sets to predict demand into the future. They may combine actual historical numbers with market analysis and opinion. But the data within the numbers is used as the basis for formulating the demand plan. Statistical models include:

Econometric

Econometric models rely on planners knowing the dependent and independent variables driving demand. They look at cause and effect and combine numbers and sales information from marketing to develop a demand formula.

Trend Projection

Trend analysis has long been a statistical “go-to” that uses past data to predict future demand. It requires planners to be aware of historical hiccups and to control for measures such as discounting.

Barometric

Barometric demand models take a series of indicators such as savings levels, inflation, income levels, and investment. They are used to determine demand in a large segment of the economy.

Demand Planning Maturity Models

Companies that use demand planning may need to understand their demand planning fares in terms of maturity. The more mature a demand planning model is, the more accurate it becomes. For example, demand plans at their most superficial level are accurate less than half the time. They use moving averages and historical numbers managed in spreadsheets.

As the demand planning system matures, it begins to use statistical modeling and may incorporate MRP and ERP platforms to measure larger data sets for shipping data, seasonal information, and more. The next level of maturity will see demand planning move to as high as 70% accuracy. It employs analytics and a complex product and customer hierarchy based on sales and orders and marketing data.

The final stages of demand planning maturity include demand modeling using downstream data such as POS information and demand sensing and shaping algorithms. This model can further be optimized as the demand planning system is fully automated and incorporates advanced analytics, complex algorithms, machine learning, and more.

How DemandCaster Can Improve Demand Model Accuracy

Each level of demand maturity assumes the ability to handle large complex datasets. And data within demand and supply planning is only going to grow. To fully automate and analyze your data for the highest level of demand model and demand forecast accuracy, the right software isn’t just a “nice to have” - it’s a necessity.

DemandCaster provides deep insights that give you end-to-end visibility of your supply chain while combining the best of traditional demand modeling practices with full automation. It enables forecasting to multi-aggregate levels, advanced trend analysis, robust “what-if” planning to prepare for contingencies, and much more. In short, it helps you get to the next level, unlocking strategic planning based on real-time advanced analytics that are ultimately what create accurate and reliable demand models.

To learn more about how DemandCaster can ramp up your demand planning, contact us today.

Topics: Supply Chain Management Planning

Plex Team
Plex Team
Plex, by Rockwell Automation, is the leader in cloud-delivered smart manufacturing solutions, empowering the world’s manufacturers to make awesome products. Our platform gives manufacturers the ability to connect, automate, track and analyze every aspect of their business to drive transformation. The Plex Smart Manufacturing Platform includes solutions for manufacturing execution (MES), ERP, quality, supply chain planning and management, Industrial IoT and analytics to connect people, systems, machines, and supply chains, enabling them to lead with precision, efficiency and agility.

Related Articles

Loading
Loading
  1. Chevron LeftChevron Left Homepage Chevron RightChevron Right
  2. Chevron LeftChevron Left Blog Chevron RightChevron Right
  3. Chevron LeftChevron Left Demand Planning Models in Today’s Manufacturing Environment Chevron RightChevron Right
Products
Manufacturing Execution System (MES) Quality Management System (QMS) Enterprise Resource Planning (ERP) Supply Chain Planning (SCP) Connected Worker Production Monitoring MES Automation & Orchestration Asset Performance Management (APM) Finite Scheduler
Platform
Smart Manufacturing Platform Cloud Infrastructure & Security Mobile Application Availability & Performance Manufacturing Automation
Resources
All Resources Case Studies Analyst Reports Knowledge Articles Demos Blog
Industries
All Industries Aerospace Auto and Tire Food & Beverage/CPG Industrial Manufacturing Plastics & Rubber Precision Metalforming & Fabrication
Services & Support
Customer Success & Advocacy Support Services Educational Services Professional Services Plex Community
Get Started
Request a Demo Download Resources Read Success Stories Webinars Contact Support
Company
About Us Why Plex Recognition Newsroom Careers Contact Us
Knowledge Articles
Types of Quality Management Systems The MES Beginner Guide A Guide to Production Part Approval Process What is Industry 4.0? A Guide to Advanced Product Quality Planning Supply Chain Planning: A Guide to Strategic Planning and Operations MES and the Future of Robotics Automation Cloud Based MES Basics Food Manufacturing Software: Why MES Is Critical for Food and Beverage Manufacturers Guide to Failure Mode and Effects Analysis (FMEA) Cloud-Based MES Solutions A Guide to Monitoring Machine Performance What is Connected Manufacturing and Why Should You Care About It?
Privacy & Cookie Policy
Terms & Conditions
Cookie Preferences
Accessibility Settings
Trust Center
© YYYY Plex, by Rockwell Automation. All rights reserved.
© YYYY Rockwell Automation, Inc.