What is bias ratio in SAP MA-SMOPS - SmartOps?

SAP Term: bias ratio

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: The value used to apply an adjustment to the stocking point forecast at the end of demand error processing, based on the difference between the forecast and actual sales.

Smart SAP Assistant

• Key Concepts: 
  Bias ratio is a metric used in SAP MA-SMOPS SmartOps to measure the difference between the expected and actual demand for a product. It is calculated by dividing the actual demand by the expected demand. A bias ratio of 1 indicates that the actual demand is equal to the expected demand, while a bias ratio greater than 1 indicates that the actual demand is higher than expected, and a bias ratio less than 1 indicates that the actual demand is lower than expected.
  
  How to use it: 
  The bias ratio can be used to identify potential problems with forecasting accuracy. If the bias ratio is consistently higher or lower than 1, it may indicate that the forecast needs to be adjusted. Additionally, it can be used to compare different products or different time periods to identify trends in demand.
  
  Tips & Tricks: 
  When using the bias ratio, it is important to consider other factors that may affect demand, such as seasonality or changes in customer preferences. Additionally, it is important to consider the size of the difference between the actual and expected demand when interpreting the bias ratio. A small difference may not be significant, while a large difference may indicate a problem with forecasting accuracy.
  
  Related Information: 
  The bias ratio is related to other metrics used in SAP MA-SMOPS SmartOps, such as forecast accuracy and mean absolute percentage error (MAPE). These metrics can be used together to gain a better understanding of forecasting accuracy and identify potential problems.