Today’s IBP feature of the day is the stock-keeping-oriented prediction error costs (SPEC) – an error measure used in forecasting 📐🔮
🧐 What does SPEC do? 🧐
When determining the forecast error for a period, this measure not only takes data for that period into account, but also considers the development of the error over time. This differentiates it from other errors measures which can be used in forecast models and makes it particularly interesting when dealing with intermittent or lumpy demand ✅
Within forecast models, it can be used in postprocessing to reflect the accuracy of the forecast, or it can be used as selection criterion for choosing the appropriate algorithm in a model with multiple forecasting methods. When using this error measure, the user even has the possibility to decide whether they prefer avoiding overstocking or avoiding understocking.
With the 2305 release being just around the corner, it is great to see, that SAP is continually improving its systems and adds new functionality to an already strong foundation 🦾
Stay tuned for more exciting new features 🤩