1. Inventory Management
  2. Demand Forecasting

Mean Absolute Percentage Error


Mean Absolute Percentage Error (MAPE) provides an average of the absolute percentage errors in the forecast. It offers a clear understanding of the magnitude of the forecasting error regardless of the direction.


Average of [(Absolute Value (Actual - Forecast) / Actual) x 100] over all items


For three items with forecast errors of 5%, 10%, and 15%, the MAPE would be 10%.