requiredemand

Requiredemand is a term used in planning and optimization to denote the minimum or target level of demand that a system is expected or required to satisfy in a given planning horizon. It is typically defined as the forecasted demand adjusted for policy choices such as desired service level, safety stock, and lead times. The concept distinguishes between actual realized demand and the target demand used for planning.

In production planning and inventory management, requiredemand serves as the demand constraint in models that determine production, procurement, and inventory levels. The goal is to ensure sufficient output to meet requiredemand while respecting capacity, costs, and inventory constraints. For each period t, requiredemand_t is used to compute order quantities and inventory balances, with the understanding that actual demand may deviate due to variability. When demand is uncertain, requiredemand can be adjusted through safety stock or service-level targets to maintain desired reliability.

In other domains, such as energy systems or cloud services, a required demand signal may reflect reliability or service-level commitments, translating into generation or provisioning targets. The term is often used descriptively within mathematical models and software tools to separate forecasted needs from realized demand, facilitating planning, optimization, and decision-making.

See also demand forecasting, capacity planning, safety stock, and inventory management.