Forecast accuracy compares forecasted demand to actual demand. This measure calculates it for products and/or families for markets/distribution channels one planning period prior to production run. In this case, forecast accuracy = 1 - the absolute value of the quantity (actual number of units - forecast number of units) divided by the actual number of units where: forecast number of units = the units forecasted for the production run immediately following the planning period actual number of units = the units actually produced for the production run immediately following the planning period. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "measure forecast accuracy" process by minimizing waste and refining resource consumption.
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Forecast accuracy one planning period prior to production run
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.