What is forecast error in SAP PP-MP - Production Planning?

SAP Term: forecast error

• Component: PP-MP

• Component Name: Production Planning

• Description: The difference between the consumption values and the forecast values in the last period.

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• Key Concepts: 
  Forecast error is a measure of the difference between the actual demand for a product and the forecasted demand. It is used in Production Planning and Detailed Scheduling (PP-MP) to help determine the accuracy of the forecast. The forecast error is calculated by subtracting the actual demand from the forecasted demand. 
  
  How to use it: 
  In PP-MP, the forecast error can be used to adjust the production plan. If the forecast error is positive, it means that the actual demand was higher than expected, and production should be increased to meet this demand. If the forecast error is negative, it means that the actual demand was lower than expected, and production should be decreased accordingly. 
  
  Tips & Tricks: 
  It is important to monitor the forecast error regularly in order to ensure that production plans are accurate and up-to-date. Additionally, it can be helpful to compare the forecast error with historical data in order to identify any trends or patterns in demand. 
  
  Related Information: 
  The forecast error can also be used in other areas of business, such as inventory management and financial planning. Additionally, it can be used to compare different forecasting methods and determine which one is most accurate.