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Cost of Misprediction

Purpose -

Tracks the financial impact of inaccurate demand predictions.

Operational Definition -

(Cost Impact of Forecast Errors / Total Revenue) × 100

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Monthly

External References -

https://www.gartner.com/

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