Question

why are forecasts for product families typically more accurate than forecasts for the individual items within a product family?

Answer 1

Forecasting:-

Forecasting is transformation of creating indication of the future depend on the past and present input and trends. Forecasting is a simple example of average estimation of a few variables at some future date. Prediction is an identical, but many normal captions. Both are statistical method applying time or longitudinal input, basically, substitute of minimum formal methods. It can be use between difference and area of appliances.

Why are Forecasts for product families typically more accurate than forecasts for the individual items within a product family?

If we are talking about more forecasts they are more accurate achieve for a large number of groups of items. Then, items have getting more chances of accuracy. Instead, if we talk about each item. Then, there is more difficulty and more attention, individual forecasts errors for any item move to cancel each and every one. So, there is lot of chances to getting more errors. For example if we talk about Suzuki cars, there are different type of cars like hatchback, sedan, and SUVs etc. now, hatchback also have many types of model, SUVs, sedan, cannot be included in one, and cannot Separate all of them in different type of companies.