How do you calculate True demand?
When calculating true demand, we need to classify the orders into the true month of demand – it depends on when your customers wanted the product.
CRDD = Customer Requested Delivery Date is the most commonly used metric. But for the seller, this should be the actual ship date.
Better yet, when the product should be available in inventory to ship.
So you need to back-calculate a few things based on the CRDD and this may be a date much earlier than the delivery date.
How do you calculate True demand?
This may really be the culprit if you are demand-planning challenged!
Read on…