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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Operations And Supply Chain Management The Core Plus
ISBN: 9780073278292
1st Edition
Authors: F. Robert Jacobs , Richard Chase
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