Abstract: A computer-implemented forecasting method is disclosed. The method may include collecting a plurality of historical demand streams. Each historical demand stream may include a time series of historical demand data for a target item at a product distribution node in a supply chain. The method may also include constructing a model tree for the plurality of historical demand streams based on a plurality of forecasting models. The method may further include forecasting a future demand stream of a target item to be distributed by a product distribution node by using a forecasting model that is associated with a specific subgroup that includes a historical demand stream of the target item at the product distribution node.