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Mean Absolute Deviation MAD
Mean Absolute Deviation MAD
It is also called MAD for short, and it is the average of the absolute value, or the difference between actual values and their average value, and is used for the calculation of demand variability. It is expressed by the following formula.
In the following example, the mean absolute deviation of actual values of April to September is 93.3.
Related term:Error in Forecast
It is also called MAD for short, and it is the average of the absolute value, or the difference between actual values and their average value, and is used for the calculation of demand variability. It is expressed by the following formula.
In the following example, the mean absolute deviation of actual values of April to September is 93.3.
Related term:Error in Forecast
Reference：JIT Business Research Mr. Hirano Hiroyuki