WAPE
Supply Chain
WAPE (Weighted Absolute Percentage Error)
Weighted Absolute Percentage Error
Sum of absolute forecast errors divided by total actual demand, providing volume-weighted forecast accuracy.
Examples
- 01WAPE for the main product family is 18 %: total absolute forecast error divided by total sales.
- 02Planning reviews WAPE monthly by product family because it gives more weight to high-volume items.
- 03When WAPE rises above 25 %, the planning team reviews its forecast model and sales inputs.