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Forecast accuracy

A supply chain flashcard explaining Forecast Accuracy. It defines forecast accuracy as the closeness between predicted and actual quantities. It discusses the difficulty in recommending a specific forecast accuracy metric and notes that usually, accuracy cannot be estimated at the time of the forecast. The image shows forecaster showing a forecast to a store manager, with forecast containing zeroes only and being 100% accurate, while the store manager suggests practical action—buying something to sell as the store shelves behind them are empty. The card advises against optimizing forecast accuracy in percentages and instead measuring it in monetary error to reflect the real cost of inaccuracies.

Artist: Marina Besfamilnaya

Learn more from the entry Forecast accuracy of the Lokad knowledgebase.