Establishment of a customer-oriented model for demand chain management

Abstract

This study attempts to solve problems encountered in traditional supply chain design, including: products not being designed or manufactured according to customer needs; low profit or over-crowded competitors in the chosen target market, and conflicts between the objectives for each member of the supply chain. Moreover, this study recommends a model for calculating the objectives for the overall demand chain and for each member. This model maximizes the overall demand chain performance by satisfying customer needs. It not only gives demand chain members for value adding direction, but also monitors the members during execution. The proposed model provides immediate corrective action if any members of the demand chain deviate from the objectives.