Forecast Bias
Supply Chain
Forecast Bias
Systematic tendency of forecasts to be consistently above or below actual demand.
Examples
- 01Forecast bias shows that sales has overforecast the premium range by 15 % for six months in a row.
- 02Looking at forecast bias separately from accuracy reveals that one sales region always forecasts high before budget talks.
- 03After forecast bias is discussed openly, sales adjusts its inputs and excess stock starts to fall.