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Primärbedarf

Also: Primärbedarf, Primärbedarfe, Planprimärbedarf, Primärer Bedarf

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In brief

Primary demand refers to the demand for finished products or saleable items that arises directly from sales planning, customer orders, or the production program. It forms the starting point for all material requirements planning within a company.

Key facts

What is primary demand?

Primary demand is the demand for products that a company sells on the market or delivers directly to customers. This includes finished goods, trade merchandise, and spare parts that appear as independent sales units. Primary demand sits at the top of the demand hierarchy and is therefore the foundation for all downstream planning: only once it is clear what needs to be sold and in what quantities is it possible to determine which assemblies, components, and materials are required.

How does primary demand arise and how is it used in practice?

Primary demand can arise in two ways: plan-driven or order-driven. In the plan-driven case, it is derived from sales forecasts or a production program — typical for series manufacturers producing to stock. In the order-driven case, a specific customer order triggers the demand — typical for make-to-order or project manufacturing. In practice, many companies operate with a hybrid approach in which forecast demand and actual demand are offset against each other.

From primary demand, secondary demands for assemblies and individual components are derived via bills of materials and formulas. Tertiary demand for auxiliaries and consumables is in turn derived from secondary demand. This three-level demand hierarchy is the foundation of every MRP run (Material Requirements Planning) in ERP systems.

  • Sales planning: Planned quantities from forecast models or sales planning feed into material planning as primary demand.
  • Customer order: Confirmed orders generate firm primary demand, which replaces forecasts in full or in part.
  • Production program: In the manufacturing industry, the production program defines primary demand per planning period.

What matters when planning?

The quality of input data is critical: an inaccurate sales forecast leads to overstocking or understocking at every downstream level. The stability of the forecast and the handling of forecast errors — for example through safety stocks or flexible supply contracts — are therefore central issues. It also needs to be determined which items are relevant for planning and which are better managed on an order-driven basis. Depending on the vendor, ERP systems differ in how they offset planned and order-based demand and how flexibly planning periods can be configured. The required service level per item group also influences how much buffer is built into primary demand planning.

Frequently asked questions

Primary demand refers to finished products or saleable items that are sold directly on the market. Secondary demand refers to the demand derived from these for assemblies, individual components, and raw materials needed to manufacture those finished products.

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