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Demand Management

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Demand Management is the process of forecasting, planning, and controlling customer demand to optimize resource allocation and improve service levels. It involves strategies to influence demand patterns, ensuring that supply meets customer needs efficiently while minimizing costs and maximizing profitability.
lightbulbAbout this topic
Demand Management is the process of forecasting, planning, and controlling customer demand to optimize resource allocation and improve service levels. It involves strategies to influence demand patterns, ensuring that supply meets customer needs efficiently while minimizing costs and maximizing profitability.

Key research themes

1. How can accurate forecasting and flexible supply chain design reduce the costs of demand unpredictability?

This research theme addresses the challenge of meeting demand in industries with volatile or uncertain demand patterns, emphasizing the integration of forecasting accuracy with supply chain flexibility and planning to minimize costs from stockouts and markdowns.

Key finding: Introduces the 'accurate response' approach, which combines improved demand forecasting by distinguishing products with predictable vs. unpredictable demand with supply chain redesign that prioritizes postponing production of... Read more
Key finding: Develops a linear aggregate planning model incorporating order promising, recipe run constraints, and capacity limits to enhance demand planning and capacity response within supply chains. The paper extends this by modeling... Read more
Key finding: Proposes a system dynamics model analyzing capacity coordination in hybrid MTS/MTO production lines with demand uncertainty. The study evaluates different capacity allocation rules and explores their impact on delivery lead... Read more

2. What optimization strategies can improve demand contract management to balance cost and capacity risks under uncertain peak demands?

This theme investigates mathematical and operational approaches to optimize contracted demand levels in contexts such as electric utilities, focusing on minimizing economic losses from mismatches between contracted and actual peak usage, including complexities introduced by intermittent renewable generation.

Key finding: Presents three mathematical models to optimally determine contracted demand levels for large electricity consumers, accounting for stochastic demand peaks and the presence of intermittent renewable generation. The models are... Read more
Key finding: Develops an advanced EOQ model addressing inventory items whose quality and quantity change dynamically while in stock, with demand dependent on inventory levels. The model optimizes cycle length and order quantities,... Read more
Key finding: Formulates and solves an inventory replenishment problem for ameliorating products with demand rates increasing with stock level. The derived model quantifies optimum order points to minimize costs, integrating holding cost... Read more

3. How do demand side management (DSM) and advanced pricing mechanisms influence energy consumption and contribute to peak demand reduction?

This research domain focuses on strategies for managing end-user demand through economic and behavioral interventions such as individualized pricing, real-time pricing, and demand response programs, aiming to optimize electricity consumption profiles and integrate renewable energies while mitigating rebound effects and grid stresses.

Key finding: Introduces individualized electricity pricing schemes exploiting advanced metering data to shape flexible residential demand. The approach reduces peak loads while maintaining nondiscriminatory average prices per user,... Read more
Key finding: Applies DSM strategies integrated with photovoltaic generation within microgrid settings to manage load profiles and reduce peak demand. Simulation results confirm cost reductions and improved system efficiency through direct... Read more
Key finding: Develops a home energy management system that incorporates deep learning-based demand prediction and dynamic pricing to optimize battery storage usage and demand response. The framework significantly reduces household... Read more
Key finding: Proposes a fuzzy logic-based intelligent DSM system integrating real-time DR programs and renewable energy. Simulation with real data demonstrates considerable reductions in energy costs and carbon emissions, validating the... Read more

All papers in Demand Management

The use of water for agricultural production in water scarcity regions requires innovative and sustainable research, and an appropriate transfer of technologies. This paper discusses some of these aspects, mainly relative to on-farm... more
IEEE Transactions on Power Systems, Vol. 8, No. 2, May 1993 ... A Generalized Knowledge-Based Short-Term Load-Forecasting Technique ... Abstract - A newly-developed algorithm for short-term load forecasting is generalized. The algorithm... more
Deployment of PHEV will initiate an integration of transportation and power systems. Intuitively, the PHEVs will constitute an additional demand to the electricity grid, potentially violating converter or line capacities when recharging.... more
As travelers are becoming more price sensitive, less brand loyal and more sophisticated, Customer Relationship Management (CRM) becomes a strategic necessity for attracting and increasing guests' patronage. Although CRM in hospitality has... more
In certain circles, demand management is seen as one and the same thing as economic pricing. This thinking is stimulated by the Dublin principle that water should be considered an economic good. But is this reasoning correct? Is economic... more
This paper provides an overview, using extensive documentary material, of developments in U.K. macroeconomic policy in the last half-century. Rather than focusing on wellknown recent changes in policy arrangements (such as the... more
An order fulfillment process (OFP) starts with receiving orders from customers and ends with delivering the finished goods. The order fulfillment process is complex because it is composed of several activities, executed by different... more
£24.99, 304 pages. 'Talent Management' (TM) has recently attracted much attention from academics and practitioners alike. Many books, articles and surveys have been published, and consulting firms attracted by its market potential (Iles,... more
In this paper we propose distributed load management in smart grid infrastructures to control the power demand at peak hours, by means of dynamic pricing strategies. The distributed solution that we propose is based on a network... more
Demand management is the supply chain management process that balances the customers' requirements with the capabilities of the supply chain. 1 With the right process in place, management can match supply with demand proactively and... more
Water markets-either formal or informal-can be an efficient method for reallocating scarce water supplies. At the same time certain constraints can raise the transaction costs of trading water. This paper reviews the conditions necessary... more
e Abstract-Emergency Department (ED) crowding is a common problem in the United States and around the world. Process reengineering methods can be used to understand factors that contribute to crowding and provide tools to help alleviate... more
, Mexico City's administration Some feel that it may be so inefficient that it is imposed a regulation banning each car from driving on a counterproductive. And Eskeland and Feyzioglu found specific day of the week. The regulation has... more
The impacts of home-based telecommuting on travel behavior and personal vehicle emissions for participants in the State of California Telecommuting Pilot Project are analyzed using the most advanced emissions modeling tools currently... more
This paper reviews the role customer-oriented demand-side management (DSM) can play in utility planning, discusses its current state of application, provides a framework for incorporating uncertainty in DSM programs, and presents ideas on... more
Climate change is one of the key global policy issues of our time. Transport is the sector from which it has been hardest to cut emissions and, to make substantial progress in the future, action will be required at all levels of... more
In this paper, we examine national conditions that encourage the growth of a private regulatory environmental system to govern forests. Economic, institutional and social capital variables for 117 countries are used to examine factors... more
Responses to demand uncertainty in the field of health-care services is a very timely research issue because of ongoing changes in demand patterns that are driven by demographics and recent changes in the delivery of these services.... more
In New Zealand as elsewhere, there is an increasing interest in alleviating congestion on the road transport network to improve economic productivity, reduce pollution, and to use the transport network more effectively. Governments enact... more
Like many river basins in South Africa, water resources in the Olifants river basin are almost fully allocated. Respecting the socalled ''reserve'' (water flow reservation for basic human needs and the environment) imposed by the Water... more
Domestic water use/demand is a complex function of socioeconomic characteristics, climatic factors and public water policies and strategies. This study therefore develops a model based on the multivariate econometric approach which... more
The Aral Sea basin is a region that faces water scarcity due to aridity and man-made desertification. To reduce the disproportion between water demand and supply improved water management is required, particularly aimed at water saving... more
With electric generation responsible for 41 percent of U.S anthropogenic carbon dioxide (CO 2) emissions from energy use, development of clean energy sources is essential if the United States is to reduce release of greenhouse gases and... more
This paper studies a problem faced by a manufacturer who has the ability to set prices to influence demand, reject orders, and set leadtimes or due-dates for accepted orders. We present decision models that integrate pricing and... more
Outdoor water restrictions are usually implemented as bans on a particular type of watering technology (sprinklers), which allow households to substitute for labourintensive (hand-held) watering. This paper presents a household production... more
Land transportation remains one of the main contributors of noise and air pollution in urban areas. This is in addition to traffic congestion and accidents which result in the loss of productive activity. While there is a close... more
Managing uncertainty when the demand is irregular and sporadic (i.e. "lumpy") is a complex issue as well as an unexplored one. This study analyses the behaviour of forecasting techniques when dealing with lumpy demand at the master... more
If an illness is not contractible, then even partially insured consumers demand treatment for it when the bene t is less than the cost, a condition known as moral hazard. Traditional health insurance, which controls moral hazard with... more
Much in line with output and capital growth, employment in Germany and the US evolved rather differently too. Starting from around 6 per cent for both actual and structural unemployment in both countries in 1989, a year broadly comparable... more
Development and analysis of demand management strategies for integrated multimodal urban corridor management requires application of a new generation of demand modeling and network analysis tools. This paper describes the development of a... more
In this paper an integrated modelling framework for water resources planning and management that can be used to carry out an analysis of alternative policy scenarios for water allocation and use is described. The modelling approach is... more
The role of various types of road user tolls has been an important part of Norwegian transport development for a number of years. There are now around 50 such projects in operation around the country. This paper examines the urban toll... more
Each day power generating units have to be selected to realize a reliable production of electric energy with the fewest fuel costs. This paper proposes decomposition and dynamic programming as techniques for solving the unit commitment... more
regard is given to demand management and the development of efficient processes, which reduce energy and resource usage and have a direct impact on waste generated. This paper presents a critical review of the limitations of applying the... more
This paper describes recent experience with integrated resource planning (IRP) and the application of least cost planning (LCP) for the evaluation of demand management strategies in urban water. Two Australian case studies, Sydney and... more
by Dan Duckert and 
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The purpose of this study was to evaluate the usefulness and sensitivity of patameters that describe various soil organic matter characteristics for the evaluation of harvesting impacts on ecosystem function, using an ecosystem-level.... more
Planning processes along a demand supply network in an environment characterized by rapid market fluctuations and product changes are studied. The relationship between demand planning and the bullwhip effect is investigated by comparing... more
Combinatorial auctions are commonly used for the allocation of discrete, complementary resources.
To ensure efficient water allocation and use, policy designers have adopted various strategies, including price setting, decentralizing irrigation water management or improving water rights. Most of these strategies have been applied... more
Transport activity, a key component of economic development and human welfare, is increasing around the world as economies grow. For most policymakers, the most pressing problems associated with this increasing transport activity are... more
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