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You can find an interesting discussion here: Look at Measures of Forecast The forecast error needs to be calculated using actual sales as a base. Potential improvements to City's demand forecast, including development of statistically-based demand models. continue reading » Demand forecasting is the art and science of forecasting customer demand to drive holistic execution of such demand by corporate supply chain and business management. To improve the accuracy of its demand forecast, a firm may update its forecast as the selling season approaches.
Demand forecasting is the art and science of forecasting customer demand to drive holistic execution of such demand by corporate supply chain and business management. Demand forecasting involves techniques including both informal methods, such as educated guesses, and quantitative methods, such as the use of.… In this paper we consider both forecast updating and lead time uncertainty.
While forecasts are never perfect, they are necessary to prepare for actual demand.