Contributors: Rod Ackermann
Forecast disaggregation
Please note: This feature is only available in the advanced forecasting module.
For many businesses with a large number of stores/locations, managing the forecasts at a store level is difficult. Additionally, forecasts generated on store-level sales data may be unreliable.
The forecast disaggregation feature resolves these issues by the creation of a region consisting of stores/locations. This enables the:
Aggregation of sales history into the region.
Creation of a more reliable forecast based on the aggregate sales at the regional level. Aggregated sales are more likely to produce a quality forecast, and where appropriate, a seasonal profile is used.
Distribution of the regional forecast back down to the stores/locations.
The benefits of this approach are:
Better forecasts at the store/location level.
Easier management of forecasts.
The Demand type for the item at the location level is shown as “Disaggregated”. This can be seen on the Stock Inquiry.
Selecting the hyperlink “Disaggregated” displays the average monthly forecast generated at the regional level, and the share of the average forecast that each location was allocated. This provides visibility on the disaggregation calculation.
In this example, the regional average forecast for this item is 148.8. The proportions of how this forecast has been shared amongst the locations are apparent.
The information button shows the basis of how the forecast was disaggregated. In this example, it was disaggregated based on the sales history of the product over the last 12 months.
The location link, opens the Inquiry screen for the item in that location.
You may be interested in the following articles to learn more about each function of the Advanced Forecasting Module: