Quick Summary: Select from Sum of Locations, Disaggregate Forecasts, or Regional Forecasting to control how sales history and forecasts are consolidated or distributed between a region and its branches.
Why It Matters
The forecasting option you choose for a region fundamentally changes how it behaves and how it influences ordering decisions. Selecting the right option is critical for achieving your inventory goals, whether that is simplifying management of many locations or improving the accuracy of volatile forecasts.
There are three mutually exclusive options for regional forecasting. You can select your desired option when first setting up the region.
Option 1: Sum of Locations
This mode aggregates the sales history and forecasts from all linked branches to form the regional forecast, rather than recalculating it at region level.
Use this when:
Branch forecasts are accurate and regularly maintained.
You need a consolidated view of total demand across all locations.
You want to validate overall demand without changing branch-level data.
This approach preserves each branch’s forecast and provides an immediate sense check at regional level.
If a forecast is manually frozen at a region that is set to “Sum of locations,” the freeze will not be overwritten during the next forecast run that sums the data from the branches.
Option 2: Disaggregate Forecasts
This mode aggregates sales history across all branches, calculates a single forecast at region level, and then splits it back to branches based on each branch’s percentage contribution to total sales.
Use this when:
There are many branches to manage and individual forecasting is time-consuming.
Branch sales histories are erratic and you want a smoother, more accurate baseline.
Global adjustments such as promotions should automatically cascade to all branches.
Because the forecast is generated from combined history, the regional demand pattern becomes smoother and more reliable. Each branch then receives a proportionate forecast that aligns with its contribution to total regional sales.
Example
If you apply a 25 percent increase for a promotion at region level, that uplift is automatically distributed across all branches according to their sales share, giving a realistic reflection of promotional impact without manual branch edits.
➜ For more on this topic, read: Forecast Disaggregation
Option 3: Regional Forecasting (Recalculate)
This mode aggregates sales history across branches and recalculates a new forecast at region level, keeping it only at the region. The regional forecast neither influences nor is influenced by branch forecasts.
Use this when:
Planning occurs only at region level and branch forecasts are unnecessary.
Branch sales are volatile but you need smoother forecasts for strategic planning.
You do not have the disaggregation add-on but still want the benefit of forecasting from combined history.
This option provides the advantages of aggregated forecasting while maintaining simplicity for high-level planning.
Configuration Notes
When creating a region, you can select one of the following:
Consolidate forecasts (Sum of Locations)
Disaggregate forecasts (Disaggregation)
Neither (Regional Forecasting / Recalculate)
Only one option can be active. Forecasts cannot be both summed and disaggregated at the same time.
The demand type used at region level appears on the Inquiry screen.
If it shows Neither, forecasts are generated from sales history in the region, and each item retains its own demand type. These forecasts remain at region level and are not disaggregated to branches.
Advanced Forecasting
Advanced Forecasting extends your ability to manage complex scenarios efficiently. It includes functionality for multi-item manual adjustments, forecast downloads and uploads, disaggregation, and group-seasonal modeling.
➜ For more on this topic, read: Advanced Forecasting Feature or Forecast Disaggregation
⚠️ Watchouts
Frozen forecast: If a forecast is manually frozen at a region that is set to “Sum of locations,” the freeze will not be overwritten during the next forecast run that sums the data from the branches.
Performance: Adding large regions can extend data refresh and post times.
Reprocess Data: A Data Reprocess is required when forecasts are adjusted at a regional level. This allows the regional forecast to disaggregate correctly to the individual locations.
💡 Tips
Check the Inquiry Screen: Use the demand type field to verify which forecasting mode is active.
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