Accuracy and accuracy-implication metrics for intermittent demand

Boylan, John and Syntetos, Aris (2006) Accuracy and accuracy-implication metrics for intermittent demand. Foresight: The International Journal of Applied Forecasting, 4. pp. 39-42. ISSN 1555-9068

Abstract

John and Aris distinguish between forecase-accuracy metrics, which measure the errors resulting from a forecast method, and accuracy-implication metrics, which measure the achievement of the organization's stockholding and service-level goals. Both measurements are important. The correct choice of a forecast-accuracy metric depends on the organization's inventory rules, and on whether accuracy is to be gauged for a single item or across a range of items, The authors recommend specific accuracy and accuracy-implication metrics for each context. Copyright International Institute of Forecasters, 2006