Business Terms Dictionary

Demand Adjustment Factor

A modification applied to the Average Daily Usage (ADU) for a specific time period to account for expected demand fluctuations. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


The Demand Adjustment Factor (DAF) helps adjust buffer calculations in DDMRP through the modification of the demand estimation ( (CMD)), ensuring that supply planning aligns with seasonal trends, promotions, or market shifts without overreacting to short-term spikes or drops in demand.


Icon

To prevent overstocking or shortages, businesses need tools to integrate anticipated future demand into stock planning. ForgeFlow Cloud ERP enables this through Demand Adjustment Factors (DAF), which dynamically adapt inventory buffers to expected demand shifts. This ensures more accurate replenishment planning, improved stock availability, and greater responsiveness to market conditions.
Learn More