Why MAPE is the Worst Forecast KPI.
MAPE - Mean Absolute Percentage Error. Periods with low demand have more influence on MAPE
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Good One
I am against general metrics but a bucketed one, We had the same during Microsoft days of analysis
- How many prediction weeks with < 20% Deviations
- How many prediction weeks with 20%-40% Deviations
- How many prediction weeks with > 40% Deviations
Best Practices for Demand Forecasting & Inventory Planning 2023
Forecasting
Best Practices for manufacturing planning and MRP in 2023
- Product lifetime vs lead time vs Shipment time
- Product holding cost vs Profitability vs Shelf Life
- Transport forecasts
- Storage forecasts
- Creating mini warehouses
Solve use cases based on current business maturity levels
Keep Exploring!!!
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