What is demand shaping?

• A. Forecasting demand using historical data.
• B. Actions to influence demand patterns through pricing, promotions, and product design to better fit supply.
• C. Inventory optimization.
• D. Sourcing strategy.

Answer: (B)

Demand shaping is the deliberate effort to influence how customers buy in order to align demand with what the supply chain can efficiently deliver. It uses levers like pricing, promotions, and product design (or features, variants, bundles, packaging) to steer demand to where capacity, lead times, or inventory support are strongest. For example, offering a temporary discount on a product during a period of limited supply can shift demand to the times or SKUs that are easier to fulfill, or creating a bundle that pairs a high-selling item with a slower-moving one can rebalance the load across products. The aim is to smooth demand, reduce peaks, and improve overall supply chain performance by shaping customer choices rather than just predicting them.

Forecasting demand using historical data focuses on estimating what will happen, not changing it. Inventory optimization is about deciding how much to hold given expected demand, not influencing demand itself. Sourcing strategy deals with selecting suppliers and procurement terms, which affects supply side but not how customers demand products.