Inventory, demand & supply planning · Core

Forecast accuracy

Also called: forecast precision, forecast error performance, demand accuracy

ELI5

A number showing how closely forecasts match actual outcomes.

Used in conversation

“Keep forecast accuracy on the dashboard, but show the definition and reporting period beside it.”

Definition

A measure of how closely forecasts match actual outcomes.

Here “Forecast accuracy” means: A measure of how closely forecasts match actual outcomes.

Pitch context

You will see “Forecast accuracy” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches inventory, demand & supply planning.

Why it matters: In inventory, demand & supply planning, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 8

Direct term-level sources and supporting source families.