MRP glossary TOP > Demand Forecast > Demand Filter
Demand Filter
Demand Filter
The Error in Forecast as the difference between forecast value and actual value is usually normally distributed, and will rarely be an extremely large or small value. The Demand Filter is usually set to ±4MAD against the forecast value, and when the actual value is more than that, the adequateness of the forecast model should be reviewed by analyzing the actual data.
Related term: Error in Forecast
The Error in Forecast as the difference between forecast value and actual value is usually normally distributed, and will rarely be an extremely large or small value. The Demand Filter is usually set to ±4MAD against the forecast value, and when the actual value is more than that, the adequateness of the forecast model should be reviewed by analyzing the actual data.
Related term: Error in Forecast
Reference：JIT Business Research Mr. Hirano Hiroyuki