In disaggregating forecasts, what does the disaggregation default rates function utilize to determine quantities?

The disaggregation default rates function relies on a set of historical demands to determine quantities when disaggregating forecasts. This method uses past demand data to establish patterns and relationships that guide how overarching forecasts can be broken down into more granular, actionable numbers. Historical data serves as a foundational benchmark, allowing the disaggregation process to effectively align projected outcomes with previously observed trends and behaviors.

Utilizing historical demands helps to ensure that the disaggregated forecasts are rooted in reality. By analyzing the data from past sales or consumption, the system can create a more accurate representation of future needs, making it easier for businesses to plan resources, inventory, and production schedules. Consequently, historical demand serves as a critical input that enhances the accuracy and reliability of the disaggregation process.