What is statistical forecast error in SAP SRD-SCM-DP - SCM-Demand Planning?

SAP Term: statistical forecast error

• Component: SRD-SCM-DP

• Component Name: SCM-Demand Planning

• Description: A technique or measure used to gauge the performance and accuracy of a statistical forecast. Examples include mean square error and mean absolute deviation.

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• Key Concepts: 
  Statistical forecast error is a measure of the accuracy of a statistical forecast. It is calculated by comparing the actual demand for a product or service to the forecasted demand. The difference between the two is the forecast error. The lower the forecast error, the more accurate the forecast.
  
  How to use it: 
  In SAP Demand Planning, statistical forecast error can be used to measure the accuracy of a statistical forecast. This can be done by comparing the actual demand for a product or service to the forecasted demand. The difference between the two is the forecast error. This can be used to identify areas where improvements can be made in order to increase accuracy.
  
  Tips & Tricks: 
  When using statistical forecast error in SAP Demand Planning, it is important to remember that it is only one measure of accuracy and should not be used as the sole indicator of success. Other factors such as seasonality and trends should also be taken into account when evaluating forecasts. Additionally, it is important to remember that forecasts are not always 100% accurate and some degree of error should be expected.
  
  Related Information: 
  For more information on statistical forecasting and how it can be used in SAP Demand Planning, please refer to SAP’s official documentation on Statistical Forecasting in Demand Planning (https://help.sap.com/viewer/d9f8b3f2c7a14e6c9f8d7a3e5b2f4d1a/1709%20000/en-US/d9f8b3f2c7a14e6c9f8d7a3e5b2f4d1a.html). Additionally, there are many online resources available that provide further information on statistical forecasting and its applications in SAP Demand Planning.