Definition of 'Demand Forecast Error %' on APO product master

[Former Member]

I am using extended safety stock planning in APO release 7.

I want to use the 'Demand Forecast Error %' field (FEDEM) on the APO product master.

Can anyone give me a mathematical definition for this 'relative demand forecast error %'.

Thanks in advance...

[Former Member · Accepted solution]

HI

Relative Demand Forecast Error in %

This is the Percentage that shows the mean deviation relationship between the forecast demand and the actual demand at demand forecast level. The lower the percentage, the more accurate the demand forecast .

We can specify values of between 0.0% and 999.9%. If the value is 0.0%, the system uses historical data to determine the relative forecast error of the demand. If We do not enter a value, the system assumes that the forecast error is 0.0%.

If we enter a value more than 0.0%, safety stock planning in SNP uses this value as a relative forecast error of the demand. The system does not evaluate historical data in this case.

For example: if we enter 5% figure, then system will adjust 5% more safety stock.

I have not worked on Replenishment Lead Time in %.

I hope this gives some insight.

Thanks

Amol