Advantages of the MAD/Mean ratio over the MAPE

Kolassa, Stephan (2007) Advantages of the MAD/Mean ratio over the MAPE. Foresight, 2007 (6). pp. 40-43. ISSN 1463-6689

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Abstract

Stephan Kolassa and Wolfgang Schütz provide a careful look at the ratio MAD/Mean, which has been proposed as a substitute metric for the MAPE in the case of intermittent demand series. They explain how MAD/Mean can be viewed as a weighted mean of absolute percentage errors and thus as a weighted alternative to MAPE. They describe several advantages of MAD/Mean to the MAPE including applicability to inventory decisions, absence of bias in method selection, and suitability for series with intermittent as well as near-zero demands. Copyright International Institute of Forecasters, 2007

Item Type:
Journal Article
Journal or Publication Title:
Foresight
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1800/1803
Subjects:
ID Code:
134038
Deposited By:
Deposited On:
22 Jun 2019 09:14
Refereed?:
Yes
Published?:
Published
Last Modified:
21 Aug 2020 04:37