How To Fix /SAPAPO/AMON_LIST414 - MLR using POS: Calculated MAPE greater than statistical forecast MAPE

/SAPAPO/AMON_LIST414 - Overview

• Message type: E = Error

• Message class: /SAPAPO/AMON_LIST -

• Message number: 414

• Message text: MLR using POS: Calculated MAPE greater than statistical forecast MAPE

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/AMON_LIST414 - MLR using POS: Calculated MAPE greater than statistical forecast MAPE ?

  The SAP error message /SAPAPO/AMON_LIST414 MLR indicates that there is an issue with the calculated Mean Absolute Percentage Error (MAPE) for a forecast generated using the Multi-Level Regression (MLR) method in SAP Advanced Planning and Optimization (APO). Specifically, it states that the calculated MAPE is greater than the statistical forecast MAPE, which is not expected behavior.
  
  Cause:
  
  Data Quality Issues: Poor quality or insufficient historical data can lead to inaccurate forecasts. If the data used for regression analysis is not representative or has outliers, it can skew the results.
  Model Specification: The MLR model may not be correctly specified. This could include missing important variables, incorrect functional forms, or multicollinearity among predictors.
  Seasonality and Trends: If the data has strong seasonal patterns or trends that are not accounted for in the MLR model, it can lead to poor forecasting performance.
  Overfitting: The model may be overfitted to the historical data, capturing noise rather than the