What is average demand in SAP SCM-ICH-IMO - Inventory Monitor?

SAP Term: average demand

• Component: SCM-ICH-IMO

• Component Name: Inventory Monitor

• Description: A demand that is determined by averaging the actual demands in a particular horizon.

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• Key Concepts: 
  Average demand is a term used in the SAP SCM-ICH-IMO Inventory Monitor component. It is a measure of the average amount of inventory that is needed to meet customer demand over a given period of time. This measure helps to determine the optimal inventory levels for a business. 
  
  How to use it: 
  Average demand can be calculated by taking the total amount of inventory that was sold over a given period of time and dividing it by the number of days in that period. This calculation will give you the average amount of inventory that was sold each day. This number can then be used to determine the optimal inventory levels for a business. 
  
  Tips & Tricks: 
  It is important to note that average demand should not be confused with peak demand, which is the highest amount of inventory that was sold over a given period of time. Additionally, it is important to consider seasonal fluctuations when calculating average demand, as this can have an impact on the optimal inventory levels for a business. 
  
  Related Information: 
  For more information on average demand and other related topics, please refer to SAP's official documentation on SCM-ICH-IMO Inventory Monitor. Additionally, there are many online resources available that provide further information on this topic.