What is 'confidence level' in SAP SCM-FRE - Forecasting and Replenishment?

confidence level - Overview

• Component: SCM-FRE

• Component Name: Forecasting and Replenishment

• Description: The assumed probability that a given desired situation for example, the non-occurence of gaps in inventory will be reached.

confidence level - Details

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  Key Concepts: 
  Confidence level is a measure of the accuracy of a forecast. It is expressed as a percentage and is calculated by comparing the forecasted values to the actual values. The higher the confidence level, the more accurate the forecast. 
  
  How to use it: 
  In SAP SCM-FRE Forecasting and Replenishment, confidence level is used to determine the accuracy of a forecast. It is calculated by comparing the forecasted values to the actual values. The higher the confidence level, the more accurate the forecast. 
  
  Tips & Tricks: 
  When using SAP SCM-FRE Forecasting and Replenishment, it is important to monitor the confidence level of your forecasts. If the confidence level is low, it may indicate that your forecasting model needs to be adjusted or improved. 
  
  Related Information: 
  For more information on confidence level and how it can be used in SAP SCM-FRE Forecasting and Replenishment, please refer to SAP's official documentation on the topic.