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Because wrong math equals tragedy in demand and supply planning... FREE Management Courses 🔥 𝟭. 𝗚𝗼𝗼𝗴𝗹𝗲 𝗣𝗿𝗼𝗷𝗲𝗰𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗖𝗲𝗿𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗲 👉 https://lnkd.in/dSVg_gUX 𝟮. 𝗜𝗕𝗠 𝗣𝗿𝗼𝗷𝗲𝗰𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗿 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗖𝗲𝗿𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗲 👉 https://lnkd.in/dYVWT9kj 𝟯. 𝗔𝗜 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 👉 https://lnkd.in/dDsiXKyK 𝟰. 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀 𝗼𝗳 𝗣𝗿𝗼𝗷𝗲𝗰𝘁 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 👉 https://lnkd.in/dRnwKXbU This infographic shows 12 fundamental calculations: ✅ #1 - MAPE (Mean Absolute Percentage Error) ❓ What: measures the average percentage error in forecasts 🧮 Calculation: [Sum of (absolute forecast errors / actual sales for each time period) / Total number of periods] X 100 ✅ #2 - WMAPE (Weighted Mean Absolute Percentage Error) ❓ What: provides a more balanced view of forecast accuracy by weighting errors 🧮 Calculation: [Sum of (absolute forecast errors / actual sales for each time period) / Sum of Actual sales] X 100 ✅ #3 - Forecast Bias ❓ What: identifies whether forecasts consistently overestimate or underestimate demand 🧮 Calculation: Sum of (forecast - actual) / Sum of Actual sales ✅ #4 - FVA (Forecast Value Added) ❓ What: measures the improvement (or deterioration) in forecast accuracy after applying a specific forecasting process or intervention 🧮 Calculation: FVA=Baseline Error−New Forecast Error 👉 where Baseline Error = forecast error from a reference method; New Forecast Error = forecast error from new method ✅ #5 - Demand Variability (Coefficient of Variation) ❓ What: indicates the consistency or volatility of demand 🧮 Calculation: Demand Variability= (σ / μ ) X 100 👉 where σ = Standard deviation of demand; μ: Average demand ✅ #6 - Promotional Lift Factor ❓ What: evaluates the impact of promotions on demand 🧮 Calculation: Lift Factor = Promotional Demand / Baseline Demand ✅ #7 - OTIF (On Time In Full) ❓ What: shows how many orders are delivered on time in full 🧮 Calculation: (Number of On Time In Full Deliveries / Total Number of Deliveries) X 100 ✅ #8 - Inventory Turnover ❓ What: indicates how fast or slow inventory is moving 🧮 Calculation: (Cost of Goods / Average inventory) X 100 ✅ #9 - Safety Stock ❓ What: determines the buffer stock needed to handle demand variability 🧮 Calculation: Z×σ×√Lead Time 👉 where Z = Z-score (based on the desired service level); Σ = Standard deviation of demand or lead-time demand ✅ #10 - Obsolescence Ratio ❓ What: tracks the portion of inventory that is no longer usable 🧮 Calculation: (Obsolete Inventory / Total Inventory) X 100 ✅ #11 - Production Yield ❓ What: measures production efficiency 🧮 Calculation: (Good Units Produced / Total Units Produced ) X 100 Any others to add? Follow Marcia D Williams for more.
Key NPD Metrics: 1. Return on Innovation Investment (ROII) What it is: This metric looks at how much money a company makes from its new products compared to…
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BREAKING NEWS Apple recently released a statement confirming that Steve Jobs, former CEO and founder of Apple has passed away today. Original Caption: EXCLUSIVE FILE photo dated Tuesday March 15 2011 of Apple CEO Steve Jobs arriving at work in March. Jobs has resigned as CEO of the world-famous company and elected Tim Cook as his replacement. Apple said in a statement that Jobs has been elected Chairman of the company.
