Customer sales of 1 Pcs in last 10 days and as per DDMRP past method it should be 1/10=0.1 Average daily usage, but system is calculating Average daily usage as 1.
So they get 5 min and 24 max, by following formula, it's too much for the customer to purchase, so they think we may have an option to make the ADU is calculated base actual usage.
Min is calculated by following formula, so it 1(Average daily usage)*5(purchase lead time)*0.8(Lead time factor) = 4, 4(Red base) * 0.3(Variability factor) = 1.2, so the Min = 4+1.2 ≈ 5.
- Red base = ADU × Decoupled lead time × Lead time factor
- Red safety = Red base × Variability factor
- Red zone = Red base + Red safety
The Record point is Min+Yellow zone, Yellow Formula as following, so the Record point = 5 +1(Average daily usage)*5(purchase lead time) = 10
- Yellow zone = Average daily usage (ADU) × Decoupled lead time
The Max = the record point + Green zone, The green zone is calculated as the maximum result of the following three equations: so the Max = 10 + 14(Max) = 24
- Minimum order quantity 0
- ADU × Order cycle 1*14
- ADU × Decoupled lead time × Lead time factor 1*5*0.8
Administrator on 10/31/2025 3:04:20 PM
Thank you very much for your input. The reason for your result is that Average Daily Usage is rounded up according to the decimal precision set on the related inventory UoM. Therefore if inventory UoM is set to be the one with 0 decimal precision - average daily usage won't support decimals either (f.ex. with standard ea set as inventory units). In order to achieve your result, you need to change the decimal precision of the inventory unit applied. We do not have any plans to change this design.
The Supply Chain Planning Team