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==Calculating the accuracy of supply chain forecasts==
Forecast accuracy in the supply chain is typically measured using the [[Mean absolute percentage error|Mean Absolute Percent Error]] or MAPE. However, there are confusions between the statistical definition of MAPE and its application among Supply Chain Planners. Statistically [[Mean absolute percentage error|MAPE]] is defined as the average of percentage errors. Most practitioners however define and use the MAPE as the Mean Absolute Deviation divided by Average Sales. You can think of this as a volume weighted MAPE. In some bad references, this is also referred to as the MAD/Mean ratio.
==How do you define Forecast Accuracy?==
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