Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Forecast Accuracy
The measure of how closely predicted demand matches actual demand in supply chain operations.
Definition
Forecast accuracy evaluates the reliability of demand forecasts to improve inventory planning, reduce stockouts, and optimize procurement.
Overview
High forecast accuracy enables better inventory decisions, minimizes excess stock, and enhances customer satisfaction.
Role
The measure of how closely predicted demand matches actual demand in supply chain operations.
Focus
High forecast accuracy enables better inventory decisions, minimizes excess stock, and enhances customer satisfaction.
Example
If forecasted demand was 1,000 units and actual sales were 950 units, forecast accuracy is 95%.
FAQs
Q: Can you give an example of Forecast Accuracy?
A: If forecasted demand was 1,000 units and actual sales were 950 units, forecast accuracy is 95%.