July 17, 2023
What level to Demand Plan at?
In this video, we discuss the importance of using the right hierarchy levels in the demand planning process. We discuss how different tasks in the demand planning process require different levels of data, and how to choose the right levels for each task. We also discuss how to use hierarchy levels to improve the accuracy of forecasts and make better decisions.
The hierarchy levels in a demand planning system are used to group data together. This allows planners to view and analyze data at different levels of detail. For example, a planner might want to view data at the lowest level, which is the level of individual products or customers. This level of detail can be helpful for identifying trends and patterns in demand. However, it can also be difficult to manage and analyze data at this level.
For this reason, planners often use higher levels of hierarchy. For example, a planner might want to view data at the level of product categories or customer segments. This level of detail can be helpful for making decisions about inventory levels or marketing campaigns.
The choice of hierarchy levels depends on the specific needs of the organization. However, there are some general principles that can be followed. For example, it is important to use the lowest level of hierarchy that is necessary to answer the questions that the planner is trying to answer. It is also important to use a level of hierarchy that is consistent with the way that the organization makes decisions.u003cbru003e
