M5: Why it matters for time-series forecasting

The M5 Forecasting Competition is one of the most-used modern benchmarks for practical demand forecasting. It uses real Walmart retail sales data with rich hierarchy (item, department, store, state) and calendar/event effects.

Why M5 is a strong standard

  • Real-world complexity: noisy retail demand, intermittent series, promotions, and seasonality.
  • Hierarchical structure: forecasts must make sense across aggregation levels, not just one series.
  • Scale: thousands of related series test both model quality and operational reliability.
  • Community adoption: many papers and libraries report M5-style performance, so comparisons are meaningful.

What ForecastingAPI.com does with M5

  • Lets you run a quick M5 demo mode from the landing page.
  • Samples a configurable number of M5 series via n_series.
  • Runs rolling backtests and reports SMAPE so you can compare models on historical windows.
  • Then generates forward forecasts for each series.

When to use M5 demo vs your own payload

  • M5 demo: great for sanity checks, regressions, and model-comparison smoke tests.
  • Your payload: best for business-specific signal, seasonality, and decision support.

Note: M5 is a benchmark, not your business. Treat it as a quality baseline, then validate on your own data.

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