term lane tolerance help what is
Meaning of tolerance lane. What is it: range of values in which a historical value should lie. If a.

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Definition tolerance lane

TOLERANCE LANE title: tolerance lane (SCM-APO-FCS) (SAP Library - Glossary)
TOLERANCE LANE category: Demand Planning (SCM-APO-FCS)
TOLERANCE LANE explained:

Term used in outlier correction.

The tolerance lane is the range of values in which a historical value should lie. If a value is outside the tolerance lane, the system deems it to be an outlier.

How the tolerance lane is determined depends on which outlier correction method you are using.

Ex-Post Method

The tolerance lane depends on the MAD measure of error.

Tolerance Lane = Ex-Post Forecast +/- Sigma x MAD

where Sigma is a factor that you enter in the forecast profile.

Median Method

The tolerance lane depends on the expected value as calculated using the median forecast model.

Tolerance Lane = Expected value x Sigma

for mor information, see the SAP Library documentation for Outlier Correction under Demand Planning.

More terms such as tolerance lane in Dictionary T.

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Manual Typing (BC-DWB-TOO):
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