@Nirmal2255 In most cases, I've heard disaggregation performed in demand planning models. Disaggregation in demand planning is the process of breaking down or decomposing high-level aggregate demand forecasts into more detailed and specific forecasts for individual products, regions, time periods, or customer segments. It involves the transformation of a consolidated or summarized demand forecast into more granular and actionable plans that can be used for production, inventory management, and other operational purposes.
The purpose of disaggregation is to create more accurate and relevant forecasts at a lower level of granularity, considering the unique characteristics and demand patterns of different subcategories within the overall demand.
For example, Coca cola's demand plan application could only be generating demand forecasts for it's soft drinks at a brand level / volume, e.g. 20,000 litres of coke for Monday, 30,000 litres of coke for Tuesday but manufacturing would require more detailed information such as specific volume (2 litre bottle, 250 ml can, 1 litre bottle) and variety (coke zero, coke classic, coke vanilla). So to bridge the gap between the detail in which demand plan model forecasts and detail in which manufacturing require to produce, the demand planning application would "disaggregate" breakdown the brand level/volume forecast in to more granular components.
So the 20,000 litres for coke forecast on Monday would be disaggregated down to
How it is disaggregated down to these units can have different rules behind them such as historical ratios, etc
@TristanS Thanks a lot. It was very helpful.
@Nirmal2255 Pls could you provide more details about the problem statement.
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