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  4. Why is my Demand Forecast Accuracy Zero?
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  4. Why is my Demand Forecast Accuracy Zero?
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  4. Why is my Demand Forecast Accuracy Zero?

Why is my Demand Forecast Accuracy Zero?

This means that your Sales Forecast was too far from Actual Demand to return a positive value figure.

For example:

    IF Forecast Sales last year was 70,500 units
    AND Product Demand was 26,284 units

The difference is 70,500 – 26,284 = 44,216

As the difference is bigger than total actual demand we return zero for Demand Forecast Accuracy otherwise the calculation would return a negative value.

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