What is 'average forecast coefficient of variation' in SAP MA-SMOPS - SmartOps?

average forecast coefficient of variation - Overview

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: Defines an average coefficient of variation representing the difference between forecasted and actual demand value for each customer facing stocking point averaged over good periods.

average forecast coefficient of variation - Details

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  Key Concepts: 
  The average forecast coefficient of variation (AFCV) is a measure of the variability of a forecast. It is calculated by dividing the standard deviation of the forecast by the mean of the forecast. The AFCV is used to measure the accuracy of a forecast and can be used to compare different forecasting methods. 
  
  How to use it: 
  The AFCV can be used to compare different forecasting methods and determine which one is more accurate. It can also be used to identify trends in the data and determine if there are any outliers that need to be addressed. Additionally, it can be used to identify areas where improvements can be made in the forecasting process. 
  
  Tips & Tricks: 
  When using the AFCV, it is important to remember that a lower AFCV indicates a more accurate forecast. Additionally, it is important to consider other factors such as seasonality and trends when evaluating the accuracy of a forecast. 
  
  Related Information: 
  The AFCV is related to other measures of forecast accuracy such as mean absolute error (MAE) and root mean square error (RMSE). Additionally, it is related to other measures of variability such as standard deviation and variance.