Why MAPE is the Worst Forecast KPI.

Описание к видео Why MAPE is the Worst Forecast KPI.

MAPE is the single WORST forecasting KPI because it rewards under-forecasting.

It heavily penalizes forecast errors during periods of low demand.
Each forecast error is divided by the corresponding demand to get a percentage. If demand is low, you get a high percentage error.

That's mechanical.

So, to achieve a good MAPE, you want to under-forecast demand to ensure you get low forecast errors during periods with low demand.

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