Business Terms Dictionary

Forward ADU

Forward ADU (Average Daily Usage) is the projected daily consumption of an item, calculated using forecasted demand instead of historical usage. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


Forward ADU is used in planning and inventory management to anticipate future demand and adjust stock levels proactively. It helps businesses prepare for expected changes in consumption patterns, improving supply chainresponsiveness.


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With ForgeFlow Cloud ERP, Forward ADU enhances DDMRP buffer management by aligning replenishment with future demand trends. This ensures materials are available before demand spikes, preventing shortages and maintaining a smooth production flow.
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