Demand Distribution | Concept

Ole Ersoy
Apr - 23  -  1 min

The Demand Distribution for Low Demand service parts models the probability of seeing a discrete demand value during the lead time for the part.

Example

For example suppose we think that the mean demand level for the part during a demand cycle (A time period spanning the lead time for the part) is 5 units.

What is the probability of seeing actual demand being 8 units?

The Demand Distribution answers these types of questions for us.