Example: Method 3: Last Year to This Year
The Last Year to This Year formula copies sales data from the previous year to the next year. This method might be useful in budgeting to simulate sales at the present level. The product is mature and has no trend over the long run, but a significant seasonal demand pattern might exist.
Forecast specifications: None.
Required sales history: One year for calculating the forecast plus the number of time periods that are required for evaluating the forecast performance (periods of best fit).
This table is history used in the forecast calculation:
Past Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 |
128 |
117 |
115 |
125 |
122 |
137 |
140 |
129 |
131 |
114 |
119 |
137 |
This table is the forecast for next year, Last Year to This Year:
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|
128 |
117 |
115 |
125 |
122 |
137 |
140 |
129 |
131 |
114 |
119 |
137 |
January forecast equals January of last year with a forecast value of 128.
February forecast equals February of last year with a forecast value of 117.
March forecast equals March of last year with a forecast value of 115.