Demand management: the essence of the theory of constraints?

Abstract

Several studies confirm that successful implementations of the theory of constraints (TOC) are expressive to the extent that the constraints are no longer internal and move into the market, making demand management (DM) a key role. Thus, the DM process is understood by the TOC as a way to identify a significant market need, build a decisive competitive edge (DCE) based on this by excellence in operations, capitalise on it, and sustain the DCE achieved from a fine synchronisation amongst some functions of an organisation, especially operations, sales, and marketing. A theoretical framework outlining the main practices of DM given the TOC is proposed and discussed under the global supply chain forum perspective. The results show that the TOC way of managing operations supports the sub-processes and their activities in the DM process, but they are carried out in a unique way.