{"id":2458,"date":"2023-10-06T00:48:20","date_gmt":"2023-10-06T00:48:20","guid":{"rendered":"https:\/\/www.smartsims.com\/support\/?post_type=ht_kb&#038;p=2458"},"modified":"2025-02-28T00:14:38","modified_gmt":"2025-02-28T00:14:38","slug":"zero-demand-forecast-accuracy","status":"publish","type":"ht_kb","link":"https:\/\/www.smartsims.com\/support\/article\/zero-demand-forecast-accuracy\/","title":{"rendered":"Why is my Demand Forecast Accuracy Zero?"},"content":{"rendered":"\n<p>This means that your Sales Forecast was too far from Actual Demand to return a positive value figure.<br><br>For example:<br><br>&nbsp;&nbsp;&nbsp; <strong>IF<\/strong> Forecast Sales last year was 70,500 units<br>&nbsp;&nbsp;&nbsp; <strong>AND<\/strong> Product Demand was 26,284 units<br><br>    The difference is 70,500 &#8211; 26,284 = 44,216<\/p>\n\n\n\n<p>As the difference is bigger than total actual demand we return zero for Demand Forecast Accuracy otherwise the calculation would return a negative value.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to calculate Demand Forecast Accuracy<\/h2>\n\n\n\n<p><strong>Demand Forecast Accuracy = 1 &#8211; (absolute value of Forecast error \/ actual demand)<\/strong><\/p>\n\n\n\n<p>where Actual Demand is the actual demand for the product, (including any Lost Sales due to insufficient production).<\/p>\n\n\n\n<p>eg. if Forecast Sales was 20,000 units, and Actual Demand was 23,000 units, then<\/p>\n\n\n\n<p>Demand Forecast Accuracy = 1 &#8211; (|20,000 &#8211; 23,000| \/ 23000)<br>= 1 &#8211; (3000 \/ 23000)<br>= 86.96%<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This means that your Sales Forecast was too far from Actual Demand to return a positive value figure. For example: &nbsp;&nbsp;&nbsp; IF Forecast Sales last year was 70,500 units&nbsp;&nbsp;&nbsp; AND Product Demand was 26,284 units The difference is 70,500 &#8211; 26,284 = 44,216 As the difference is bigger than total&#8230;<\/p>\n","protected":false},"author":3,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"ht-kb-category":[29,41,20],"ht-kb-tag":[],"class_list":["post-2458","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-mikesbikes-advanced-marketing","ht_kb_category-mikesbikes-accounting-marketing","ht_kb_category-mikesbikes-introduction-year-one"],"_links":{"self":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/2458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb"}],"about":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/comments?post=2458"}],"version-history":[{"count":5,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/2458\/revisions"}],"predecessor-version":[{"id":2551,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/2458\/revisions\/2551"}],"wp:attachment":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/media?parent=2458"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-category?post=2458"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-tag?post=2458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}