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 week Historical Method
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 IBP-2011 Version. Other methods of Outlier Correction are all self-explanatory and hence I am not covering it 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.
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