Example of Forecast Through the Reporting Period
In this example, assume that you are generating estimates for the months of April, May and June:
Month |
Seasonality |
Sales 2007 |
Sales 2008 |
Sales Estimate |
|---|---|---|---|---|
JANUARY |
8.2192 |
30,000 |
40,000 |
|
FEBRUARY |
6.8493 |
25,000 |
35,000 |
|
MARCH |
5.4795 |
20,000 |
25,000 |
|
APRIL |
7.6712 |
28,000 |
37,177.51 |
|
MAY |
8.2192 |
30,000 |
39,777.77 |
|
JUNE |
9.5890 |
35,000 |
45,542.80 |
This table lists how the system calculates projected sales for April, May and June:
Month |
Calculation |
|---|---|
Sales Estimate (April) |
= 0.076712 × (40,000/.082192 + 35,000/.068493 + 250,007.054795) ÷ 3 = 0.076712 × (486,665.37 + 511,001.12 + 456,246.01) ÷ 3 = 37177.51 |
Sales Estimate (May) |
= 0.082192 × (35,000/.068493 + 25,000/.054795 + 37,177.51 ÷ 0.076712) ÷ 3 = 0.082192 × (511,001.12 + 456,246.01 + 484,637.48) ÷ 3 = 39,777.77 |
Sales Estimate (June) |
= 0.095890 × (25,000 ÷ 0.054795 + 37,177.51/.076712 + 39,777.77 ÷ 0.082192) ÷ 3 = 0.095890 × (45,6246.01 + 48,4637.48 + 48,3961.58) ÷ 3 = 45,542.80 |