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Analytics

MAE (Mean Absolute Error)

What is MAE in demand forecasting?

MAE measures the average absolute difference between forecasted and actual values in the same units as the data (e.g., cases, units). Unlike MAPE, MAE is not distorted by small-volume SKUs. For FMCG distributors managing thousands of informal outlets with highly variable order sizes, MAE often provides a more reliable accuracy measure than MAPE.

How iQStep handles this

Forecast Accuracy metrics

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