•Assume the firm has an aggregate monthly forecast for the entire country as 10,000 units and it use four distribution centres to service the demand with a historical split of 40, 30, 20, and 10 per cent respectively.
•Forecasts for individual distribution centres will be projected to be 4,000, 3000, 2,000 and 1,000 respectively.
•In top-down approach a national level SKU forecast is developed and then the forecasted volume is spread across locations on the basis of historical sales pattern.
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