Operational Definitions of Demand

[andreas_zaras]

Hello,

I have been reading a white paper entitled "Fundamental Issues of Business Forecasting" that is based on a paper by M. Gilliard appeared in the Journal of Business Forecasting. In this paper a couple of operational demand definitions are presented based on data from shipments and orders. Is anybody aware of any sources (e.g. web sites, academic or practitioner papers, books, white papers etc) where i can get detailed information about the mentioned definitions of demand or other operational definitions. Actaullay i need references on the ways demand is measured in practice for forecasting purposes. As far as i researched, i didn't find any references on which the previously mentioned papers are based so any resource would be highly appreciated.

Thanks in advance,

Andreas

[mvgilliland · Accepted solution]

Hi Andreas,

For an updated discussion of this topic, see "Defining 'Demand' for Demand Forecasting" in the Summer 2010 issue of Foresight: The International Journal of Applied Forecasting. I felt that forecasters used the term "demand" too loosely, without a precise operational definition, and I wrote the original article because I couldn't find any thorough academic treatment of the topic. The examples I provided were ones I had seen in practice, and are not necessarily documented anywhere else.

If you do an online search such as "what is true demand" you can find a couple of other discussions that may be of interest, for example:

• Demand Planning.Net: Are you Planning By Exception?
• When will you need to use ‘True Demand’?

--Mike Gilliland

[andreas_zaras]

Hello Mike,

Thank you very much for your answer!

Andreas