This page enables you to review and adjust parameters for the management of forecast error correction. The corrected forecast error is used for the safety stock calculations. 

Use the right-hand context selector dropdown to select a product and location combination.

Parameters

Parameters are set by the System Administrator at the Global level and applied to all combinations. These parameters are shown in the right-hand panel as Effective Parameters. The parameters can be adjusted for the specified product-customer combination using the fields shown in the left-hand panel as Edit Parameters.  

Note: When adjusting parameters for the specified combination, the adjusted settings will also be shown in the Effective Parameters panel, though the changes won't be applied globally. 

ParametersValues
Correct From

Specifies the baseline for correction. In the case of From Mean, the values are calculated using periodic data starting from the product’s effective date and ending with the last effective period.

  • Off: prevents the application from calculating outliers for correction.
  • From Mean: sets the application to create outliers based on values being greater than x standard deviations from the mean.
Outlier MagnitudeThis parameter specifies the number of standard deviations from the mean (or standard errors from the trend line) that should determine an outlier. A value of 2 highlights any data points that are more than 2 standard deviations from the mean (or standard errors from the trendline) as outliers. 
Correct To

If an outlier is to be corrected, this parameter determines the value that should be corrected to. 

  • To Limit: Corrects outliers to the upper or lower limit.  
  • To Mean: Corrects outliers to the Mean.  
Period by PeriodSelecting this checkbox forces the system to identify all outliers but enables the user to manually select which outliers should be corrected. If set to No, all outliers will be automatically corrected as per the Correct To parameter.  When set to Yes, then each outlier period can be reviewed on its own, and a decision is taken as to whether correct. 

Forecast Error Correction 

ParametersValues
ABS Error (U)The absolute Forecast – Actual error.
Mean ABS Error (U)The mean value of the absolute error. 
Upper LimitThis is the user-defined parameter set in Outlier Magnitude. It specifies the number of standard deviations from the mean that should be used to determine an outlier. Any values which exceed this upper limit will be auto-corrected by the system.  
Corrected ABS Error (U)This is the value once the forecast error correction has been applied. 

Outliers

ParametersValues
ABS Error (U)The absolute Forecast – Actual error.
Period by PeriodIf Period by Period correction is enabled, the table becomes editable to choose which periods to correct. 

 Corrected Forecast Error 

ParametersValues
ABS Error (U)The absolute Forecast – Actual error.
Period by PeriodIf Period by Period correction is enabled, then outlier periods can be manually corrected as per the Correct To parameter. 
System Corrected Error (U)The value for the selected product-customer combination once the history correction has been applied.
Manual Correction (U)This enables to enter a value to manually override the System Corrected History (U). 
Corrected ABS Error (U)This value will default to ‌System Corrected Error (U) unless a value is entered within the Manual Correction (U) cell. 


Steps

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