Calculate average daily demand from total demand over days, weeks, months, quarters, or years, with units per day and period equivalents. Months use 30 days, quarters 90 days, and years 365 days; enter the actual day count when calendar accuracy matters.
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Average Daily Demand Formula
The following formula is used to calculate the average daily demand for a given total demand and number of days.
Variables:
- ADD is the average daily demand
- TD is the total demand
- D is the number of days
To calculate the average daily demand, divide the total demand by the number of days.
What is Average Daily Demand?
Average daily demand refers to the average amount of a product or service that is consumed or required each day over a specified period. This metric is crucial for inventory management, supply chain planning, and understanding consumer behavior. Average demand supports stock planning, but demand variability, lead times, and service targets must also be considered to manage shortages and excess stock.
How to Calculate Average Daily Demand?
The following steps outline how to calculate the Average Daily Demand.
- First, determine the total demand over the specified period (TD).
- Next, determine the number of days in the period (D).
- Finally, calculate the average daily demand using the formula ADD = TD / D.
- After inserting the values and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Total Demand (TD) = 500 units
Number of Days (D) = 10 days
Average Daily Demand (ADD) = 50 units/day
