MHB Distributing Demand through the week

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The discussion focuses on how to redistribute weekly product demand when a Thursday bank holiday removes that day's demand from the calculation. Participants agree that both keeping the distribution factors at five or adjusting them to four will yield the same total demand of 370. One suggested method is to retain the original distribution factors, setting Thursday's factor to zero, and then calculate the new daily demands based on the remaining factors. This approach maintains the integrity of the original demand distribution while adjusting for the holiday. Ultimately, the consensus is that both methods are mathematically valid, but using the original factors provides a clearer forecast.
Bushy
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Hi all,

If weekly demand for a product is over five work days and assuming a bank holiday on a Thursday does not affect the weekly demand of 370 how should the total be distributed through the week ignoring Thursday?

Example

A normal week

[TABLE="class: MsoNormalTable, width: 150"]
[TR]
[TD="width: 64, bgcolor: transparent"][/TD]
[TD="width: 64, bgcolor: transparent"]Demand
[/TD]
[TD="width: 73, bgcolor: transparent"]Distribution factor
[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Mon
[/TD]
[TD="width: 64, bgcolor: transparent"]
100


[/TD]
[TD="width: 73, bgcolor: transparent"]
1.351351


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Tue
[/TD]
[TD="width: 64, bgcolor: transparent"]
80


[/TD]
[TD="width: 73, bgcolor: transparent"]
1.081081


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Wed
[/TD]
[TD="width: 64, bgcolor: transparent"]
80


[/TD]
[TD="width: 73, bgcolor: transparent"]
1.081081


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Thu
[/TD]
[TD="width: 64, bgcolor: transparent"]
60


[/TD]
[TD="width: 73, bgcolor: transparent"]
0.810811


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Fri
[/TD]
[TD="width: 64, bgcolor: transparent"]
50


[/TD]
[TD="width: 73, bgcolor: transparent"]
0.675676


[/TD]
[/TR]
[/TABLE]With no Thursday demand should the new distribution factors (yet to be decided) add to 4 given we have removed a day or can it be kept at 5, either way will give the total demand required but which is mathematically correct?
 
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Bushy said:
Hi all,

If weekly demand for a product is over five work days and assuming a bank holiday on a Thursday does not affect the weekly demand of 370 how should the total be distributed through the week ignoring Thursday?

Example

A normal week

[TABLE="class: MsoNormalTable, width: 150"]
[TR]
[TD="width: 64, bgcolor: transparent"][/TD]
[TD="width: 64, bgcolor: transparent"]Demand[/TD]
[TD="width: 73, bgcolor: transparent"]Distribution factor[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Mon[/TD]
[TD="width: 64, bgcolor: transparent"]
100


[/TD]
[TD="width: 73, bgcolor: transparent"]
1.351351


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Tue[/TD]
[TD="width: 64, bgcolor: transparent"]
80


[/TD]
[TD="width: 73, bgcolor: transparent"]
1.081081


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Wed[/TD]
[TD="width: 64, bgcolor: transparent"]
80


[/TD]
[TD="width: 73, bgcolor: transparent"]
1.081081


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Thu[/TD]
[TD="width: 64, bgcolor: transparent"]
60


[/TD]
[TD="width: 73, bgcolor: transparent"]
0.810811


[/TD]
[/TR]
[TR]
[TD="width: 64, bgcolor: transparent"]Fri[/TD]
[TD="width: 64, bgcolor: transparent"]
50


[/TD]
[TD="width: 73, bgcolor: transparent"]
0.675676


[/TD]
[/TR]
[/TABLE]With no Thursday demand should the new distribution factors (yet to be decided) add to 4 given we have removed a day or can it be kept at 5, either way will give the total demand required but which is mathematically correct?


Hi Bushy! :)

Both methods will give the same answer.
They are mathematically equivalent.
So both are mathematically correct.
 
Would you favour a particular method?
 
Bushy said:
Would you favour a particular method?

For myself I would prefer a third method.

Leave the distribution factors as they are, except for Thursday for which the factor will become zero.
Then calculate the new demand for each day with:

$\text{Demand} = \dfrac{\text{Distribution factor}}{\text{Sum of all distribution factors}} \times 370$

As you can see, there is no 4 or 5 involved.

Originally, the distribution factors were calculated from the actual demand.
Now that you want to create a forecast for a week with a bank holiday, that forecast is based on the previously calculated distribution factors.
I feel that they should not be changed to find the new demand - they are your input.
 
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