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Component: PP-DD
Component Name: Demand-Driven Replenishment
Description: Average usage of a product or component on a daily basis, calculated based on the demand over a selected averaging interval.
Key Concepts: Average daily usage (ADU) is a metric used in the PP-DD Demand-Driven Replenishment component of SAP. It is used to calculate the average daily demand for a particular item over a given period of time. This metric is used to determine the optimal order quantity for an item, as well as to forecast future demand. How to use it: In order to calculate the ADU, you must first determine the total demand for an item over a given period of time. This can be done by summing up the daily demand for that item over the period of time. Then, divide this total by the number of days in the period to get the ADU. Tips & Tricks: When calculating ADU, it is important to consider seasonal fluctuations in demand. For example, if you are calculating ADU for a product that is typically in higher demand during certain times of year, such as Christmas or summer vacation, you should take this into account when calculating your ADU. Related Information: The PP-DD Demand-Driven Replenishment component of SAP also includes other metrics such as safety stock and reorder point. These metrics are used in conjunction with ADU to determine optimal order quantities and forecast future demand.