What is forecast accuracy measurement?

< 1 min read

Forecast accuracy measurement is the process of evaluating how close predicted values are to actual outcomes.
In my project, I worked on measuring sales forecast accuracy for monthly demand planning.
We compared forecasted sales with actual sales using metrics like MAPE.
For example, if we forecasted 10,000 units but actual sales were 9,200 units, we calculated the percentage error.
I built a dashboard in Excel showing forecast vs actual variance by region and product category.
We noticed higher errors in seasonal products due to unpredictable demand spikes.
After incorporating historical seasonal trends, forecast accuracy improved from 82% to 91%.
Forecast accuracy measurement helps improve planning, inventory control, and revenue prediction.

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