Which statement best describes Unit Demand forecasting?

• A. It is a bottom-up approach where unit managers report anticipated activity volume to estimate the number of people needed.
• B. It is a top-down forecast driven by executives.
• C. It relies exclusively on external labor market data.
• D. It uses random sampling of departments to estimate staffing.

Answer: (A)

Unit demand forecasting builds the staffing plan from the bottom up by starting with each unit’s expected workload and translating that activity into people needed. This approach captures how different units may have varying demand and staffing needs, then rolls those unit-level requirements up to determine overall headcount. That’s why describing it as a bottom-up process where unit managers report anticipated activity volume to estimate staff needs is the best fit. It differs from a top-down forecast, which starts with high-level projections set by executives and works downward, and it isn’t limited to external labor market data or based on random sampling of departments.