Algorithms vs. Reality: Why Forecasting Models Often Fail

Algorithms vs. Reality: Why Forecasting Models Often Fail

Introduction In today’s business world, forecasting models play a central role in decision-making. Companies use them to predict demand, optimise supply chains, and manage finances. However, despite their importance, even advanced algorithms often fail. This article explains why. We explore four common issues that undermine forecast accuracy: poor data quality, unpredictable “black swan” events, overfitting, […]