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Need to know the formula used for the demand forecast error

Oct 12, 2017 at 09:31 PM


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Hello Gurus,

We are trying to understand how safety stock calculation works in SNP.

I have the following initial situation in the planning book.

July Aug Sept History 1000 1300 1200 Forecast 900 1400 1200

Product master settings are:

Safety stock method: BT

Service level: 97.0 and all other fields are blank.

After perfroming the safety stock calculation for three months as mentioned above using /SAPAPO/MSDP_SB and planned for the next three months, I get the following results.

Demand forecast Error = 3783.009

Can anybody tell how the demand forecast error are calculated by the system (3783.009 and so on)?

What formula is used by the system to calculate the Demand Forecast Error?

Thanks in advance,


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