What is demand shaping in SCM?

• A. Increasing forecast accuracy through data analytics.
• B. Influencing demand through pricing, promotions, and product availability to align demand with supply capacity.
• C. Forecasting future demand.
• D. Setting safety stock levels.

Answer: (B)

Demand shaping means actively steering how customers buy by using market levers to fit demand to what the supply chain can handle. It relies on pricing, promotions, and product availability (and assortment decisions) to influence when and what customers choose to buy, so demand aligns with capacity and constraints.

This approach is about using those levers to modify demand patterns, not just forecasting what will happen or deciding how much safety stock to hold. For example, a company facing limited production capacity might run a targeted promotion on certain SKUs or adjust availability in channels to smooth demand toward what can be fulfilled. In contrast, simply forecasting demand or setting safety stock are planning steps, not actions intended to shape customer demand through pricing or availability.