Lead Demand

Also called lead time demand, lead demand is the market demand for a particular product starting when a stock reorder is made and ends when the goods are delivered. To calculate lead demand, the daily sales numbers and total time it takes for the supplier to deliver the item from the date of order are […]

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Commodity

A commodity is basically any good available naturally in large volumes and doesn’t have a unique selling proposition. It has constant demand throughout the year and can be easily sold and traded worldwide at a relatively uniform price. The term “commodity” encompasses a wide array of goods, including coffee beans, gold, rubber, water and fuel. […]

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Full Demand

Full demand is a market state wherein consumers are willing to buy all units of a specific product. This is the type of demand that most manufacturers desire. A full demand scenario exists when a manufacturer is aware of the demand for a particular product and addresses that demand appropriately conforming to necessary product quality […]

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Irregular Demand

Irregular demand is the fluctuating demand for a product. These are goods that don’t enjoy popularity throughout the year. The demand phase could be seasonal, monthly, weekly, daily or even hourly in nature. For example, umbrellas see maximum buyers only during monsoon and summer. Companies that cannot adapt to this seasonal demand or cannot cope […]

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Declining Demand

Declining demand refers to a good’s decreasing sales compared to its previous sales numbers. In other words, a product’s declining sales figures are indicative of its declining demand. This decline in demand could be due to the introduction of a new and more innovative competitor offering, or the product deteriorating in quality over time. The […]

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