Question:

Dear Dr. Jain,

What are the benchmarks in forecast accuracy in the retail industry, specifically for companies that use JDA Demand software?

Answer

These are benchmarks of forecast errors in the retail industry, based on the last five years of IBF surveys. Numbers represent the total industry, and not those of who use just JDA. Because of few observations in each survey, we have to combine the numbers.

Level 1 Month Ahead 2 Months Ahead 1 Quarter Ahead
SKU

Category

Aggregate

30%

18%

9%

34%

20%

9%

33%

25%

8%

 

I hope this helps.

Dr. Chaman Jain,

St. John’s University