Estimation of Demand Variability Parameters.

Abstract

Demand variability is measured by percent forecast errors; e.g., if the forecast is 100 and actual is 75, percent forecast error is 25%. Analysis of more than 13,000 items shows that percent forecast error correlates highly with item activity. Items with larger numbers of demands per year tend to have lower percent forecast errors. An estimating relation to get expected forecast error based on item activity is developed. (Author)

Document Details

Document Type
Technical Report
Publication Date
May 01, 1974
Accession Number
AD0781942

Entities

People

  • Alan J. Kaplan

Tags

Readers

  • Logistics and Supply Chain Management.
  • Regression Analysis.