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Value Chain Planning - Actuals or Forecast?
The Appropriate Baseline measure for MAPE
The denominator for MAPE has often been debated. Why do we recommend using the Actual Demand instead of the forecast as the denominator?
Traditionally, Forecast used to be the baseline measure since senior management was interested in how actual sales compared to forecast. However, as a performance measure, this can create some subtle bias, especially if used to measure how a deviation compares to the expectation.
Valtitude / Demand Planning LLC specializes in helping businesses improve their planning across their Value Chain. We provide consulting services and solutions implementation in Demand Planning, Integrated Business Planning (IBP) , S&OP and Supply Chain Optimization. Value Chain Planning involves a larger focus on planning across the entire value chain that includes the customers as well as suppliers - a collaboration with your customers could take the form of CPFR - Collaborative Planning Forecasting and Replenishment.
To know More, Visit Us:
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