Data Cleansing:Outlier Correction Methods in IBP-Demand

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Outlier Detection Calculation with IQR Method:



 

Output generated with outlier value for Actuals Qty Adj KF



Scenario 2: Variance Method Detection and Correction with Tolerance

Input KF - Actual Quantity

Output KF - Actual Quantity Adjusted

Historical period: 11 weeks



 

Run Statistical Forecast with 11 weeks Historical Method



 

Conclusion

In this blog, I have explained only the Outlier correction method ‘correction with Tolerance’ and covered new Outlier correction methods for Trend and Seasonality Introduced in the IBP-2011 Version. Other methods of Outlier Correction are all self-explanatory and hence I am not covering them as a part of this blog. So with this, I would like to conclude that any forecasting model if it needs to obtain a better accuracy it requires a defined pre-processing step which should cleanse the complete dataset.

Please post any of your queries in the comment section.