What is mean absolute percentage error in SAP SRD-SCM-DP - SCM-Demand Planning?

SAP Term: mean absolute percentage error

• Component: SRD-SCM-DP

• Component Name: SCM-Demand Planning

• Description: The absolute error divided by the actual demand for a given number of periods. This value is expressed as a percentage.

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• Key Concepts: 
  Mean Absolute Percentage Error (MAPE) is a measure of forecast accuracy used in SAP Demand Planning. It is calculated by taking the average of the absolute percentage errors of all the forecasts made. The MAPE is expressed as a percentage and is used to compare different forecasting models and to measure the accuracy of a model over time. 
  
  How to use it: 
  In SAP Demand Planning, MAPE can be used to evaluate the accuracy of a forecast model. To calculate MAPE, the absolute percentage errors of all forecasts are added together and divided by the total number of forecasts. The result is then expressed as a percentage. 
  
  Tips & Tricks: 
  When using MAPE to evaluate a forecasting model, it is important to remember that it does not take into account any bias in the forecast. Therefore, it is important to also consider other measures such as mean absolute error or mean squared error when evaluating a model. 
  
  Related Information: 
  For more information on MAPE and other measures of forecast accuracy, please refer to the SAP Demand Planning documentation.