Measuring forecast model accuracy to optimize your business objectives with Amazon Forecast

We're excited to announce that you can now measure the accuracy of your forecasting model to optimize the trade-offs between under-forecasting and over-forecasting costs, giving you flexibility in experimentation. Costs associated with under-forecasting and over-forecasting differ. Generally, over-forecasting leads to high inventory carrying costs and waste, whereas under-forecasting leads to stock-outs, unmet demand, and missed revenue opportunities. Amazon Forecast allows you to optimize these costs for your business objective by providing an average forecast as well as a distribution of forecasts that captures variability of demand from a minimum to maximum value. With this launch, Forecast now provides accuracy metrics for multiple distribution points when training a model, allowing you to quickly optimize for under-forecasting and over-forecasting without the need to manually calculate metrics.