What is the term for transforming forecasts into actionable plans to meet projected demand?

The term for transforming forecasts into actionable plans to meet projected demand is aggregate planning. Aggregate planning is a crucial process in supply chain management that involves developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization. This includes balancing supply and demand, which involves aligning resources and production capabilities with the forecasted demand.

One key aspect of aggregate planning is that it encompasses decisions related to production rates, inventory levels, and staffing, ensuring that a company can meet customer demands effectively while minimizing costs and optimizing resource utilization. By translating demand forecasts into specific operational plans, aggregate planning enables organizations to respond proactively to market needs.

In contrast, revenue management focuses on maximizing income from a fixed, perishable resource, which is not directly about planning for demand fulfillment. Supply chain analysis typically involves evaluating and optimizing supply chain processes and performance rather than directly converting forecasts into operational plans. Inventory management focuses on controlling and overseeing the ordering inventory, storage, and use of components in production, playing a supporting role in the overall planning process rather than leading it.