Relative Forecast Error - Safety Stock

[Former Member]

Hi APO Gurus,

I have generated the System Recom. Forecast in DP and released to SNP. After Getting the SRFC to SNP, i have run the Safety Stock Planning.

What I would like to know is that how Relative Forecast Error is calculated in the System (during the SS run).

Plz advice.

Regards,

Sivabalan.K.S.

[Former Member · Accepted solution]

Hi Siva.

Not clear what you mean by relative forecast error. Could you clarify.

SS calculates forecast error as part of its processing, normally by comparing the historical forecast v actuals (as defined by the key figures you select in the safety stock transaction /SAPAPO/MSDP_SB).

Calculation is generally along the lines of SUM(FC-ACT)/SUM(FC) for the defined period.

Hope this helps, M.

[Former Member]

got the answer