In supply chain management, which of the following is a commonly used measure for measuring forecast error?
Understand the Problem
The question is asking about commonly used measures for evaluating forecast error in supply chain management. It seeks to identify specific metrics or methods used in this context.
Answer
Mean Absolute Deviation (MAD).
The final answer is Mean Absolute Deviation (MAD).
Answer for screen readers
The final answer is Mean Absolute Deviation (MAD).
More Information
Mean Absolute Deviation (MAD) is a popular measure because it provides a simple way of expressing the average magnitude of errors in forecasts without considering the direction (positive or negative). This makes it useful in various situations where understanding overall accuracy is important.
Tips
Common mistakes include confusing MAD with other measures like Mean Squared Error (MSE) or Mean Absolute Percentage Error (MAPE). It's important to understand the differences and when each is appropriately used.
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