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Average Daily Calculation In Supply Planning

edited Feb 25, 2026 8:01AM in Supply Chain Planning and Collaboration 1 comment

Summary:

How is Average daily demand calculated in Supply Planning?. As we know the formula given is :

Average Daily Demand = (sum of Demand for Days of cover Demand Period of Item) / Days of cover Demand Period of Item

These item attributes are enabled when safety stock is planned. We do not want to maintain safety stock but need to see the Average Daily Demand

Also, We have seen that, the 'Average Daily Demand' is calculated and seen in the material plan even when these attributes are not updated. But are not able to understand the calculation

Ref: Screenshot attached:

In Plan Options 'Horizon for Average Daily Demand = 7' that would explain the 'Average Daily demand' of 428.571 and 321.429 seen on 18/10/26 and 20/12/26.

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