Calculating demand forecast accuracy: Difference between revisions

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'''Calculating demand forecast accuracy''' is the process of determining the accuracy of forecasts made regarding customer demand for a product.

<ref>Forecasting</ref>==Importance of forecasts==

Understanding and predicting customer demand is vital to manufacturers and distributors to avoid stock-outs and maintain adequate inventory levels. While forecasts are never perfect, they are necessary to prepare for actual demand. In order to maintain an optimized inventory and effective supply chain, accurate demand forecasts are imperative.