Research On Demand Chain Management Based On Data Mining

DCM ( Demand Chain Management) is new tendency of the developing SCM (Supply Chain Management). It is drived by the demand of the terminal customer. And it makes the separated units, such as suppliers, manufacturers, distributors and shopkeepers, into an integer by the feed-forward information of consuming and the feedback ones of supplying. Those suppliers, manufactures, distributors and shopkeepers work collaboratively for the object of sending the correct goods with correct status to the correct place in correct time.DM (Data Mining) is one of the Business Intelligence (BI) technologies. It is oriented to applications. And it can pick up those potential, valued information, knowledge, model or rule etc, from those data that are abundance, imperfection, noisy, blurry and random.Introducing data mining to demand chain management is the result of the development of data analysis technology. It can help the managers of enterprise find the potential problems and rules from the data warehouse, and work out the corresponding decision.Firstly, this article introduces the background, definition and content of demand chain management. Then it discusses the relation and the difference between DCM and SCM, and analyses the bull-whip effect on demand chain. Secondly, it talks about the theory and method about using data mining. Thirdly, it illustrates how to apply the technology of data mining to demand chain management from three aspects, which are customer management, suppliers management and logistics management. In this part, it puts emphatically forward a forecasting model of product, which has proved its correctness and practicability by evaluating with actual data. In the end, the article looks forward the proposition about how to design the demand chain management, and the function and of the module of demand management, which transforms the theory to practice.