[ Q ] What is the best way to measure forecast accuracy? Should we calculate the forecast lag-3 vs. actuals (invoices/ shipments), or forecast lag-3 vs. booked orders. Booked orders are supposed to be true demand, but they are not because they are often re-booked because of inventory shortage. [ A ] Before answering, I want to be sure I understand the question. What does the forecast lag-3 imply?

From Issue: Using Scorecards for Improving and Sustaining the S&OP Process
(Summer 2016)

Answers to Your Forecasting Questions