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What is the time window used for calculating the average daily demand measure

in Supply Chain Planning and Collaboration 1 comment

Summary:

We wanted to use the inventory cover of days based on projected inventory balance. Currently the formula for Cover days is

Safe_Division(ProjectedAvailable Balance,Average Daily Demand,null)

I wanted to know what is the time period used to calculate Average Daily Demand. Is it based on forecast ? What is the source measure for this ?

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