APICS CPIM – Basics of Supply Chain Management — Question 2

A product has a forecast of 200 units a month. The actual demand for the past 6 months has been 195, 210, 205, 190, 220, and 225.
Which of the following values reflects the mean absolute deviation for this data?

Answer options

• A. 7.5
• B. 12.5
• C. 45
• D. 75

Correct answer: B

Explanation

The mean absolute deviation (MAD) measures the average of the absolute differences between forecasted and actual demand. In this case, the MAD is calculated to be 12.5, which is the correct answer. The other options do not accurately represent the average of the absolute differences calculated from the data provided.