# Top-Down Demand Planning

*Last updated: 2026-06-26*

> Top-Down Demand Planning enters supply chain operations when an aggregate forecast is generated at company or business unit level and then disaggregated to individual SKUs, regions, or distribution centres using predefined allocation ratios.

Top-Down Demand Planning enters supply chain operations when an aggregate forecast is generated at company or business unit level and then disaggregated to individual SKUs, regions, or distribution centres using predefined allocation ratios. The starting point is strategic targets, market share assumptions, or macroeconomic indicators – not granular data from individual sites. This makes the method well suited to annual budgeting and capacity planning, where a consistent baseline is needed without delay. Unlike bottom-up planning, which builds forecasts by aggregating local inputs, top-down figures can diverge from the operational reality of specific markets or warehouses. In practice, the two approaches are therefore often reconciled into a single aligned plan, with the resulting demand signals governing procurement volumes, production scheduling, and inventory deployment across the supply chain.

**Source:** [https://en.wikipedia.org/wiki/Demand_planning](https://en.wikipedia.org/wiki/Demand_planning)

## Quick Facts

| Property | Value |
|---|---|
| Term | Top-Down Demand Planning |
| Language | EN |
| Word count | 126 |
| Last updated | 2026-06-26 |
| Source | https://en.wikipedia.org/wiki/Demand_planning |

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