Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.

Question

Quizplus · Accepted Answer

Forecasts for groups of items tend to be more accurate than forecasts for individual items because the variability and randomness in demand for individual items can cancel out when aggregated, leading to a more stable and predictable pattern for the group.

Forecasts for Groups of Items Tend to Be Less Accurate