Average Demand Interval
The measurement of the regularity of demand occurrences over time which is used to calculate the Demand Category at the SKU and SKU Stream level. It is calculated as
(Total Number of Demand Periods) / (Number of Non-Zero Demand Periods)
Example
Consider a demand history of [5, 4, 0, 0, 3, 2, 0, 1, 0, 0, 0]
Total Periods = 11
Total Non-Zero Demand Periods = 5
The value of the Average Demand Interval is 11 / 5 = 2.2