During the setup of Demand Sensing, which conditions must you consider?

Setting up the forecast model at the product-location level is essential during the setup of Demand Sensing because this granularity allows for a more accurate and tailored approach to forecasting. By focusing on specific products in particular locations, organizations can capture local demand trends and variations that might be obscured in aggregated data. This level of detail is critical for adapting forecasts to current market conditions, consumer behavior, and supply chain dynamics.

The product-location specificity facilitates the Demand Sensing process, enabling quicker responses to actual demand signals and enhancing the overall accuracy of demand forecasts. This precision is particularly valuable in rapidly changing markets where demand can fluctuate significantly based on various factors such as seasonality, promotions, and economic conditions.