Forecast Reconciliation and Proportional Forecasting
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Forecast Reconciliation and Proportional Forecasting
Forecast Reconciliation is the process of comparing and balancing different forecasts or forecasts modeled at different levels of the product hierarchy. In this e-book, we describe the process and algorithms to reconcile the top-down forecasts modeled at an aggregated level say Brand, Product Line or Business Unit with bottom-up forecasts created with customer/market intelligence at the SKU or SKU/Warehouse level.