A demand forecast is not an end product. It is an input to an ordering decision, and that decision is asymmetric: running out costs the lost margin, ordering too much costs the markdown. When those two numbers differ, the optimal order is not the expected demand, and the gap between them is com...
Source: [Dev.to](https://dev.to/multigrid/demand-forecasting-for-inventory-the-loss-is-not-symmetric-2p2b)