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Question on ideal level of demand forecasting in APO DP

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Hi All,

 

When I see books like springers I understand that it is always better to forecast demand at a aggregated level say Product-Location level and disaggregate at a lower level as required rather than forecasting at a detailed level. This would give better forecasting results.

 

I wanted to confirm whether the above understanding is correct. Also is there any thumb rule to achieve the right level of aggregation for better forecasting.

 

Thank you.


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