Demand Planning
- 08 Jan 2025
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Demand Planning
- Updated on 08 Jan 2025
- 1 Minute to read
- Contributors
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Demand Planning Metrics
The Demand Planning module helps evaluate the effectiveness of your forecasting process by providing key metrics that measure accuracy, bias, and overall performance. These metrics can be analyzed across different attributes such as segmentation type, product category, or individual products, allowing you to gain deeper insights into specific areas of your demand planning process. By tracking these metrics, you can assess the impact of different forecasting methods and identify areas for improvement. The following metrics, available on the Owl platform, focus on evaluating demand planning performance and provide insights into how well your forecasts align with actual sales.
| Metric | Definition |
|---|---|
| Forecast Qty | The total quantity of products predicted to be sold in a given period. This is the planned sales quantity |
| Order Qty | The total quantity of products ordered or actually sold in a given period. |
| Bias Qty | The difference between the forecasted quantity and the actual quantity ordered/sold. This indicates whether forecasts are biased towards over- or underestimating demand. |
| Error Qty | The total difference between forecasted quantities and actual quantities. It shows how far off the forecasts are from reality. |
| % Bias | The percentage measure of forecast bias, indicating whether forecasts consistently over- or underestimate demand. |
| % Accuracy | The percentage measure of forecast accuracy, showing how close the forecasted quantity is to the actual quantity. |
| % FVA (Forecast Value Add) | A metric that evaluates the value gained from the forecasting process compared to a basic method (such as a moving average). It indicates whether more advanced forecasting methods lead to better accuracy. |
| MTD % Bias | The bias of the forecast for the current month, indicating any tendency for forecasts to consistently over- or under-estimate demand in the month. |
| MTD % Accuracy | The accuracy of the forecast for the current month, providing insights into how well the forecast has performed in the current period. |
| MTD % FVA | The Forecast Value Add percentage for the current month, showing how much value the forecasting process has added in the month. |
If you want to see more detailed definitions and calculations for each metric, you can find this information in the Data Manager section within the platform.
