Forecast accuracy compares forecasted demand to actual demand. This measure calculates it for products and/or families for markets/distribution channels in unit measurement as a percentage of units shipped. Forecast accuracy = (forecast sum - forecast variance) divided by forecast sum where: Forecast sum = the sum of the units forecasted. It is part of a set of Process Efficiency measures that help companies optimize the performance of their "plan for and align supply chain resources" process by minimizing waste and refining resource consumption.
Forecast accuracy as a percentage of units shipped
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.