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| Format: | Preprint |
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2025
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| Online Access: | https://arxiv.org/abs/2508.10063 |
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| _version_ | 1866909736552628224 |
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| author | Klee, Steven Xia, Yuntian |
| author_facet | Klee, Steven Xia, Yuntian |
| contents | Time series forecasting is a critical first step in generating demand plans for supply chains. Experiments on time series models typically focus on demonstrating improvements in forecast accuracy over existing/baseline solutions, quantified according to some accuracy metric. There is no doubt that forecast accuracy is important; however in production systems, demand planners often value consistency and stability over incremental accuracy improvements. Assuming that the inputs have not changed significantly, forecasts that vary drastically from one planning cycle to the next require high amounts of human intervention, which frustrates demand planners and can even cause them to lose trust in ML forecasting models. We study model-induced stochasticity, which quantifies the variance of a set of forecasts produced by a single model when the set of inputs is fixed. Models with lower variance are more stable.
Recently the forecasting community has seen significant advances in forecast accuracy through the development of deep machine learning models for time series forecasting. We perform a case study measuring the stability and accuracy of state-of-the-art forecasting models (Chronos, DeepAR, PatchTST, Temporal Fusion Transformer, TiDE, and the AutoGluon best quality ensemble) on public data sets from the M5 competition and Favorita grocery sales. We show that ensemble models improve stability without significantly deteriorating (or even improving) forecast accuracy. While these results may not be surprising, the main point of this paper is to propose the need for further study of forecast stability for models that are being deployed in production systems. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2508_10063 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Measuring Time Series Forecast Stability for Demand Planning Klee, Steven Xia, Yuntian Machine Learning Time series forecasting is a critical first step in generating demand plans for supply chains. Experiments on time series models typically focus on demonstrating improvements in forecast accuracy over existing/baseline solutions, quantified according to some accuracy metric. There is no doubt that forecast accuracy is important; however in production systems, demand planners often value consistency and stability over incremental accuracy improvements. Assuming that the inputs have not changed significantly, forecasts that vary drastically from one planning cycle to the next require high amounts of human intervention, which frustrates demand planners and can even cause them to lose trust in ML forecasting models. We study model-induced stochasticity, which quantifies the variance of a set of forecasts produced by a single model when the set of inputs is fixed. Models with lower variance are more stable. Recently the forecasting community has seen significant advances in forecast accuracy through the development of deep machine learning models for time series forecasting. We perform a case study measuring the stability and accuracy of state-of-the-art forecasting models (Chronos, DeepAR, PatchTST, Temporal Fusion Transformer, TiDE, and the AutoGluon best quality ensemble) on public data sets from the M5 competition and Favorita grocery sales. We show that ensemble models improve stability without significantly deteriorating (or even improving) forecast accuracy. While these results may not be surprising, the main point of this paper is to propose the need for further study of forecast stability for models that are being deployed in production systems. |
| title | Measuring Time Series Forecast Stability for Demand Planning |
| topic | Machine Learning |
| url | https://arxiv.org/abs/2508.10063 |