Inventory transactions considered to calculate Average Daily Demand in Inventory

Summary:

Which inventory transactions are considered while calculating average daily demand to calculate min and max values

Content (please ensure you mask any confidential information):

We are setting up policy profile to calculate min and max values. It calculates average daily demand which we multiply with days of supply to get a min and max value. Which exact inventory transactions are considered for calculation of this daily demand. We are able to test it with misc issue transaction and we are generating value in org level so does it ignore sub inv transfers while calculating average demand and only considers the transactions that reduces the total onhand value on org level of the item?