Forecast Accuracy (%)
Regarding the measurement of the forecast accuracy I would like to ask a question. The Formula 1 below shows a common (or intuitive) suggestion and is het one I would use … Read More
Best and Worst Practices in Demand Planning
Demand Planning Best practices in a training workshop format.
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
Customer Focused Supply Chain Collaboration
I will be speaking on Customer Focused Supply Chain collaboration on Wednesday Oct. 13th at the Bear & Grill Restaurant, Orange CT at 6:30pm as part of the New Haven … Read More
Forecast Modeling Capabilities in SAP APO vs. Other Statistical Tools
I will take SAS software and Forecastpro as benchmark tools here to compare the capabilities of APO DP. Between SAS and APO DP, the difference is huge. You have an … 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
Demand Volatility vs Forecast Accuracy
Demand volatility does NOT necessarily mean the demand is unpredictable. Demand volatility also does not mean the demand is an ugly scatter of points across the map. Forecast accuracy and Demand volatility are two different things, though there is a strong relationship between accuracy and volatility in practice. To improve forecast accuracy, you may need to do a variety of things and reducing or mitigating volatility is just one of those things.
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