I have 5000 SKUs which all of them are highly positive autocorrelated, to get the item level forecast for all5000 SKUs (disaggregate forecast) which approach can provide more accurate forecasts, BU or TD, SES is forecasting method? and why?
BU approach: we do the forecast for all 500 SKUs directly TD approach: first we sum up the demand for all SKUs, then we do the forecast for aggregate demand, finally according to the weight of each SKU, we will obtain the disaggregate forecast for each SKU!(f(i,t)=pi*Ft)
Thank you in advance!