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

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

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Nicolas Vandeput

Nicolas Vandeput

Consultant, Trainer, Author: 📙Data Science & Forecasting, 📘Inventory Optimization linkedin.com/in/vandeputnicolas 👍Tip: hold down the Clap icon for up x50