Just go through the OGC publications for Service Strategy.
It talks about the Demand management as a process in detail and you will get the answer to all your questions.
For reasons of brevity, I am not going into full detail here but you need to first look at the process interfaces for Demand management. What are the other life cycle processes that DM interfaces with?
You will be able to work out the inputs and outputs once you have a clear understanding of this.
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