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In a short paragraph please answer the following question thank you Intro to Logistics Explain the...

In a short paragraph please answer the following question thank you

Intro to Logistics

Explain the critical role Demand Planning plays in creating a Highly Reliable Cost Effective Logistics network?

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Answer #1

A reliable and cost effective logistic network refers to the efficient flow of goods and its storage, and efficient services n between the point of origin and the point of consumption in order to meet customers’ requirements. Demand planning plays an important role as a good demand forecast help to better understand customer demand with the availability of goods on time. Accurate demand planning ensures reduced inventory levels and thus the cost of storing inventory. A good demand plan also ensures o better planning of purchasing and procurement, which reduces costs of materials. It also ensures better and efficient use of resources available.

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