MAD
The Mean Absolute Deviation. It is the average absolute difference between demand and forecast over a period, calculated as ([Σ N observations (Abs(Demand of X periods - Forecast of X periods))] / N) / X
• A value closer to zero indicates an accurate forecast
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Each demand or forecast record is formed by aggregating data of x forward-looking periods:
• For PAI Foundation dashboards, the forecast metrics are calculated using x = 1 slice
• For PAI Advanced dashboards, the forecast metrics are calculated using x= Lead Time, x = 3, or x = 6 slices
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