Computing Forecast Error: Should I divide by forecast or demand?

Nicolas Vandeput
3 min readFeb 8, 2022

I often get the following question from my clients and trainees:

To express the forecast error as a percentage, should we divide the forecast error by the demand or the forecast?

To be or not to be? Credit
Nicolas Vandeput

Consultant, Trainer, Author: Forecasting & Inventory. πŸ“¦πŸššπŸ“Š Contact me if you need help optimizing your supply chain.