Which forecasting approach aggregates forecasts from various levels within the organization?

The approach that aggregates forecasts from various levels within the organization is known as Bottom-Up Forecasting. This method relies on input from lower levels of the organization, where employees often have direct insight into operational conditions, market needs, and customer expectations.

In Bottom-Up Forecasting, individual departments or units generate their own forecasts based on their specific situations and insights. These individual forecasts are then aggregated to form a comprehensive organizational forecast. This process not only incorporates a wide range of perspectives but also enhances the accuracy of the overall forecast by ensuring that it reflects the nuances and complexities of different segments of the organization.

This approach contrasts with Top-Down Forecasting, where senior management sets the forecast based on broader organizational objectives without as much input from lower levels. Zero-Based Forecasting, on the other hand, starts from a "zero base," requiring all expenses and forecasts to be justified from scratch, rather than building on previous data. Scenario Planning does not focus on numerical forecasts but rather on preparing for various future conditions by exploring different scenarios, which lacks the aggregation process of Bottom-Up forecasting.