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FORECASTING A DEMAND
us to make an estimate about the probability of future events. Although there are
different methods for making a forecast, you should always follow a logical
process that consists of the following steps; such as formulating the problem and
collecting data, manipulating and cleaning data, building and evaluating the
model, applying the model and finally evaluating the forecast. Through planning,
them, but not everything is good, forecasts tend to carry an error, but the
achievement of the smallest possible error is the goal consistent with the
The importance of this trial insists on the preponderance that exists in the
and has had good results, "CAFE" Cumulative absolute prognosis error.
Therefore, in the course of this essay we will be dealing with different authors and
points of view.
Basically, "CAFE" is designed to consider not only forecast errors, but also
configured on the basis of forecasts. The "CAFE" is a sum of the product of the
cumulative forecast error and the weighting factors for backorder and inventory
costs. In addition, it has gained weight by making clear its effectiveness of the
proposed measure by conducting intensive experiments with competing demand
occurs when actual demands are met. It is therefore more reasonable for a new
The article affirms the new measure, the Cumulative Absolute Forecast
forecast errors. The "CAFE" can be represented as the cumulative sum of CFE
how accurate a forecast can be, but these are designed only to measure the
difference between real demands and forecasts and do not have the capacity to
caused by the forecast error. Basically, the CAFE is designed to consider not only
forecasting errors but also costs caused by errors in the planning of aggregate
identification of errors thus generating tools with which professionals can achieve
more accurate forecasts and many benefits to the organization that implements
it.