Forecast Accuracy Metrics

Forecast accuracy metrics evaluate how well predictions match actual outcomes, helping businesses measure the reliability of their forecasts. Common metrics include Mean Absolute Error (MAE), which shows the average size of errors regardless of direction; Mean Squared Error (MSE), which emphasizes larger errors; and Mean Absolute Percentage Error (MAPE), expressing errors as a percentage for easier interpretation. These metrics help identify how close forecasts are to real results, guiding improvements and decision-making to optimize planning, inventory, and resource allocation.