Materials
Forecast Accuracy
The measure of how closely predicted demand matches actual demand in supply chain operations.
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Updated 2025-10-01
Definition
Forecast accuracy evaluates the reliability of demand forecasts to improve inventory planning, reduce stockouts, and optimize procurement.
Overview
Overview
High forecast accuracy enables better inventory decisions, minimizes excess stock, and enhances customer satisfaction.
Calculation
Forecast Accuracy = ((1 - |Forecast - Actual| / Actual) * 100)%
Example
If forecasted demand was 1,000 units and actual sales were 950 units, forecast accuracy is 95%.
Tags
#Forecast Accuracy#Demand Planning#Inventory Management#Materials
Related Terms
Flow Forecasting
Demand Variability
EOQ
