This KPI is absolutely critical because the more accurate your forecasts, the more profit the company makes and the lower your operational costs. We choose a particular forecasting method because we think it will work reasonably well and generate promising forecasts but we must expect that there will be error in our forecasts. This error is a function of the time difference between the actual value (Dt) and the forecast value (Ft) for that period.
Read more: https://demand-planning.com/2020/06/01/8-kpis-every-demand-planner-should-know/