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Forecast Accuracy
The accuracy of sales forecasts, which is critical for effective operations planning and inventory management.
Implications
The degree to which a prediction or forecast matches the actual outcome, often measured using statistical methods to compare forecasted values with observed results, important for improving forecasting models and decision-making processes.
Example
Example: A retail chain assesses the forecast accuracy of its sales predictions by comparing them to actual sales data, adjusting its forecasting models to reduce errors and improve inventory management.
Related Terms
Different from forecast precision, which measures how consistently forecasts can be replicated, accuracy focuses on how close the forecasts are to the actual outcomes.
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