Use a new criterion that is calculated by taking the MAD and dividing by the average demand.

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Use a new criterion that is calculated by taking the MAD and dividing by the average demand. This criterion is called the mean absolute percent error (MAPE) and gauges the error of a forecast as a percent of the average demand. What are the advantages and disadvantages of aggregating demand from a forecasting view? Are there other things that should be considered when going from multiple distributors to a single distributor?

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