White paper on Forecast Accuracy – Applied Forecasting

A new white paper was published by DemandPlanning.Net, covering the topics of Forecast Accuracy, Lag & Bias, and Safety Stock Strategies. DemandPlanning.net is an information resource for forecasting and supply chain professionals.

Accurate and timely demand plans are a vitaI component of an effective supply chain. Forecast accuracy at the primitive SKU level is critical for proper allocation of supply chain resources. Inaccurate demand forecasts aften would result in supply imbalances when it comes to meeting customer demand. This white paper discusses the process of measuring forecast accuracy, the pros and cons of different accuracy metrics, the time-lag with which accuracy should be measured, and a method to identify and track forecast bias.

DemandPlanning.Net, founded in 2001, is provided as an exclusive web resource by Demand Planning, LLC, which specializes in Business Process and Strategy consulting in the areas of Demand Management and Sales and Operations Planning for medium-sized businesses. Based in Woburn, MA, the firm also offers on-site training workshops and hosted Webinars in Demand Forecasting, Sales and Operations Planning, CPFR, Market Share forecasting and Inventory Management and Optimization.