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MAD
Mean Absolute Deviation
MAD stands for Mean Absolute Deviation, and is the average of the absolute value, or the difference between actual values and their average value. It is used for the calculation of demand variability. For details, see "Mean Absolute Deviation".
Related term: Error in Forecast
MAD stands for Mean Absolute Deviation, and is the average of the absolute value, or the difference between actual values and their average value. It is used for the calculation of demand variability. For details, see "Mean Absolute Deviation".
Related term: Error in Forecast
Reference:JIT Business Research Mr. Hirano Hiroyuki
Irregular Component | Demand Forecast | Mean Absolute Deviation MAD