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Former Member
Jul 18, 2007 at 08:27 AM

Demand variability for safety stock calculation

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I am using APO version 5.

For safety stock calculation, one important parameter is 'demand variability'.

Theory suggests this is based on the comparison of the actual sales for a period with the past forecast made for that period.

But could one instead compare actual sales with the 'ex post' forecast quantity?

Thanks,

Bob Austin