It is ______ to forecast demand for groups of items than for individual items.

Forecasting demand for groups of items is easier because it allows for the smoothing out of variability and fluctuations that can be present when predicting demand for individual items. When assessing a larger group, the irregularities and extremes in demand for specific items may offset each other, leading to a more stable expectation of overall demand.

Additionally, aggregated data often reflects broader market trends and customer behavior patterns that are less discernible when evaluating each item in isolation. This collective approach can leverage shared characteristics among the items, such as seasonality or category trends, to enhance the accuracy of the forecast.

In contrast, forecasting individual items requires a more granular analysis, where the idiosyncrasies and unique demand drivers of each item must be accounted for, potentially leading to greater complexity and uncertainty in the predictions. Understanding these dynamics underlines why estimating demand at a group level is generally more straightforward and effective.