Forecast Accuracy

How close forecasts were to actual demand.

Forecast accuracy sets the floor on inventory efficiency and service performance.

Average absolute error of 18% gives 82% forecast accuracy.

Always read accuracy with bias; accurate but biased forecasts create systematic excess or shortage.

Segment by volume and volatility, use the right forecast horizon, and add downstream demand signals.

Aggregating to a level where errors cancel and accuracy looks better than it is.