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
Demand Forecasting, Sales Planning, Big Data Analytics & IBP
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
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
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
This post addresses a practitioner question on MAPE and MPE calculations. In both cases, always use the measure that is volume weighted.
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
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
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
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 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
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