Home > Research > Publications & Outputs > Advantages of the MAD/Mean ratio over the MAPE
View graph of relations

Advantages of the MAD/Mean ratio over the MAPE

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>2007
<mark>Journal</mark>Foresight
Issue number6
Volume2007
Number of pages4
Pages (from-to)40-43
Publication StatusPublished
<mark>Original language</mark>English

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