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TERM
Demand Index
Relative demand compared to a baseline.
Definition
A demand index scales sales to a base period or market at 100 to show highs and lows.
How to Calculate
Divide period sales by base sales, then multiply by 100.
Why it Matters
Shows seasonality and event-driven peaks.
Key Advantages
Easy to trend and compare across items.
Example
Demand index of 150 in July for ice cream.
Use it to
Index demand versus benchmark to rank markets, stores, or weeks by relative opportunity. Allocate inventory and support to high-index locations to prevent lost sales.















