Forecast Error Myth #2: An Unweighted Forecast Error Measurement Makes Sense
… type, a product with monthly sales of 20,000 units receives the same weight as one with monthly sales of 200 units. And that is a serious problem. However, this myth is often never discussed at companies.
Reporting Out Forecast Error from the Demand Planning Department
The forecast error or forecasting accuracy measurement in forecasting applications is primarily for the user or planner.
Companies will then create a custom report that pushes the forecast error or forecasting accuracy, or planners will export the error to Excel, perform the calculation in a spreadsheet, and provide it to their Director of Forecasting …