Hierarchical reconciliation in forecasting

Hierarchical reconciliation in forecasting involves aligning forecasts at different levels of a hierarchical structure, such as aggregating forecasts from lower-level entities (e.g., products) to higher-level entities (e.g., regions or categories) while ensuring consistency across all levels. This approach ensures that forecasts are coherent and accurate across different granularities, supporting effective decision-making and resource allocation in complex organizational settings.