Using Simulation to Determine When Forecast Accuracy Matters

Stephan Kolassa

Foresight: The International Journal of Applied Forecasting, 2023, issue 68, 20-24

Abstract: Organizations may spend millions on systems, processes, and staffing to improve forecast accuracy - on the assumption that improved accuracy delivers improved business performance. But bottom-line business payoff is not guaranteed. Stephen Kolassa argues that whether accuracy matters can only be assessed in the context of the business decision the forecast is used for. He provides a simulation framework that organizations can use to evaluate the accuracy / business value relationship in the context of their own operations. Copyright International Institute of Forecasters, 2023

Date: 2023
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