What is a likely consequence of poor demand management?

The consequence of poor demand management is excessive inventory levels. Effective demand management involves accurately forecasting the needs and wants of customers, which allows organizations to maintain the right amount of stock to meet that demand without overstocking or running out of products. When demand management is poor, an organization may overestimate demand, leading to an accumulation of unsold inventory. This can result in significant costs related to storage, potential obsolescence, and tied-up capital that could have been utilized more effectively elsewhere. Balancing supply with actual demand is crucial, and when this balance is not maintained, it leads to inefficient inventory levels that can hinder a company's financial performance and operational efficiency.