Finale Knowledge Base

What is Demand Velocity?

Demand Velocity is available to use as a Reorder Calculation Method either universally or at the product-level. The calculation is almost exactly the same as Finale's Sales Velocity calculation - meaning that Demand Velocity is a function of the total units sold over a period of time and the total number of days in that period of time.

The key difference between Sales Velocity and Demand Velocity is that Demand Velocity will consider the sales of a product where:

  • The item is sold as a standalone product

  • The item is sold in the form of a BOM component product

In calculating the total number of units sold over the particular period of time.

Demand Velocity will account for both selling scenarios whereas Sales Velocity will not.