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