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The demand management strategy should be based on the continual examination of usage and product trends. Market demand will determine the price, quantity, and quality of the need. A better price can be negotiated with suppliers through economies of scale (the increase in efficiency when the number of goods or services being produced increases), if demand for the need is comparatively high. The purchase price of the need will have to be lower than the value it creates. The level of quality of the need will dictate the specifications and requirements passed on to the supplier. The specifications and requirements will affect the need’s price and delivery time. Lastly, projected product usage factors, reallocation of products between facilities, and any changes in the maintenance concept(s) will impact the demand patterns.
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