The Forecasting Efficiency Quotient
As demand planners, have we added value through forecasting? Is your forecasting effort efficient? You can answer in the affirmative, if your diligent efforts in demand planning has resulted in … Read More
Category: Metrics and Diagnostics
Demand Metrics for Forecast Diagnostics
We just published a new Demand Metrics Diagnostics Template for all DPNet users. This template is provided as a reference to calculate the health of the modeled forecast for one … Read More
Forecast Bias Over Tracking Signal
Tracking Signal is used to measure forecasting bias over time for the same SKU/Product especially when bias approaches extreme proportions and crosses a threshold. This comes from the Quality Control … Read More
Response to MAPE and MPE Calculations – Mark Chockalingam
This post addresses a practitioner question on MAPE and MPE calculations. In both cases, always use the measure that is volume weighted.
Confusion of MAPE/MPE Calculation
I have some confusion of MAPE/MPE calculation, since the source is different, the methodology is also different, indeed confused. For MAPE, 1)average of absolute error/actual demand 2)sum of absolute error/sum … Read More
Calculating MAPE – Special Cases: Obsolete Stock
When calculating MAPE what is recommended when actuals are positive but forecast is 0 (for example when clearing obsolete stock)? Can you make the forecast match the actual quantity so … Read More
Using Orders to Predict POS?!
I saw this linked in comment in a discussion group: “I hate to get technical”. That expression always bothered me, but I am wondering who IS getting technical….who is using … Read More
Value Chain Metrics and Score-Carding
One of the Key steps to improving your Value chain is to measure and score-card the current state. If you don’t measure where you are, how will you know what … Read More
Tracking Signal
Tracking signal is a measure used to evalue if the actual demand does not reflect the assumptions in the forecast about the level and perhaps trend in the demand profile. … Read More
Can We Use Multiple Linear Regressions to Model Sales Promotions?
The simplest approach to model promotions is through interventions. This is also called event modeling in the literature. We collect a list of events and classify into types of events … Read More