What is 'target deviation' in SAP SCM-IBP-RM - Response?

target deviation - Overview

• Component: SCM-IBP-RM

• Component Name: Response

• Description: The quantity shortage on the first day on which an issue occurred.

target deviation - Details

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  Key Concepts: 
  Target deviation is a measure of how close a forecast is to the target value. It is calculated by subtracting the target value from the forecast value and dividing the result by the target value. The result is expressed as a percentage. 
  
  How to use it: 
  Target deviation can be used to measure the accuracy of a forecast. It can be used to compare different forecasts and identify which one is more accurate. It can also be used to identify trends in forecasting accuracy over time. 
  
  Tips & Tricks: 
  When using target deviation, it is important to consider the context of the forecast. For example, if the target value is very high, then even a small deviation may be significant. On the other hand, if the target value is very low, then even a large deviation may not be significant. 
  
  Related Information: 
  Target deviation is related to other measures of forecasting accuracy such as mean absolute error and mean squared error. It can also be used in conjunction with other measures such as tracking signal and bias to get a more complete picture of forecasting accuracy.