Tracking Signal
A measurement that indicates whether the forecast average is keeping pace with any genuine upward or downward changes in demand. It monitors the forecast to see if it is biased high or low. Calculated as [Σ N observations (Demand of X periods - Forecast of X periods)] / [Σ N observations (Abs(Demand of X periods - Forecast of X periods))]
• The range is [-1, 1]
• A Tracking Signal 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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