Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items are not subject to as many influencing factors.

Question

Quizplus · Accepted Answer

Forecasts for groups of items are subject to more influencing factors such as seasonality, trends, and demand variability among different items within the group. Therefore, the accuracy of the forecast for the group as a whole may be impacted by these different factors affecting each individual item within the group.

Forecasts for Groups of Items Tend to Be Less Accurate