1. Inventory Management
  2. Demand Forecasting

Forecast Bias


Represents the tendency of the forecasts to consistently be higher or lower than the actual demand. Understanding bias helps in refining forecasting methods.


Sum of (Forecasted Demand - Actual Demand) over a period


If over a month, forecasted demand exceeds actual demand by 5 units each week, the forecast bias for that month is 20 units.