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Configuration for average Daily Demand Calculation based on Forecast type

Hi experts,

In PIM configuration for planning there is Average Daily Demand Calculation option at item level, the options is forecast type (Historical Sales, order Forecast and Sales Forecast .

I don't have any documentation about the average daily demand, the purpose and is it calculated by the types of forecast ? for example I choose the forecast type to be sales forecast, what would happen ? and does it have impact to planned order and my forecasting method/calculation ?

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