TOPICS » Demand Forecasting

Calculating Forecast Accuracy & Forecast Error

Calculating Forecast Accuracy & Forecast Error

2 min read

Why Forecast Accuracy is Important Calculating forecast accuracy, in relation to the supply chain, is typically measured using the Mean Absolute Percent Error or sometimes called MAPE. Statistically MAPE is defined as the average of percentage errors. Most inventory planners, however, define and use the MAPE as the Mean Absolute...Read more

Manage Seasonality of Demand Forecasting

How to Manage Seasonality of Demand to Increase Forecasting…

2 min read

Seasonality, as it relates to inventory management, is defined as a certain time series with repetitive or predictable patterns of demand. Seasonality is typically measured by the quantity of interest for small time intervals, such as days, weeks, months or quarters. Almost every manufacturer or distributor can expect to have...Read more

Demand Forecasting Accuracy

4 Ways to Stay on Top of Your Demand…

3 min read

Demand forecasting is an estimated demand of what will be required to fulfill customer request over a defined future period of time. Knowledge of how demand will fluctuate enables a company to keep the right amount of stock on hand without over stocking or under stocking specified items.If demand is...Read more