Method 1-3

These processing options let you specify which forecast types that the system uses when calculating the best fit forecast for each level in the hierarchy. You can also specify whether the system creates summary forecasts for the selected forecast method.

Enter 1 to use the forecast method when calculating the best fit. If you leave the processing option blank, the system does not use that forecast method when calculating the best fit and does not create summary forecasts for the method.

The system defines a period as a week or month, depending on the pattern that is chosen from the Date Fiscal Patterns table (F0008). For weekly forecasts, verify that you have established 52 period dates.

1. Percent Over Last Year

Specify which type of forecast to run. This forecast method uses the Percent Over Last Year formula to multiply each forecast period by a percentage increase or decrease. You specify the increase or decrease in the Percent processing option. This method requires the periods for the best fit plus one year of sales history. This method is useful for seasonal items with growth or decline. Values are:

Blank: Does not use this method.

1: Uses the Percent Over Last Year formula to create summary forecasts.

2. Percent

Specify the percent of increase or decrease by which the system multiplies the sales history from last year. For example, type 110 for a 10 percent increase or type 97 for a 3 percent decrease. Values are any percent amount; however, the amount cannot be a negative amount. Enter an amount to use or select it from the Calculator.

3. Calculated Percent Over Last Year

Specify which type of forecast to run. This forecast method uses the Calculated Percent Over Last Year formula to compare the periods of past sales that you specify to the same periods of past sales of the previous year. The system determines a percentage increase or decrease, then multiplies each period by this percentage to determine the forecast. This method uses the periods of sales order history that you specify in the Number of Periods processing option plus one year of sales history.

This method is useful for short term demand forecasts of seasonal items with growth or decline. Values are:

Blank: Does not use this method.

1: Uses the Calculated Percent Over Last Year formula to create summary forecasts.

4. Number of Periods

Specify the number of periods to include when calculating the percentage increase or decrease. Enter a number to use or select it from the Calculator.

5. Last Year to This Year

Specify which type of forecast to run. This forecast method uses the Last Year to This Year formula which calculates the year's forecast based on the prior year's sales. This method uses the periods best fit plus one year of sales order history. This method is useful for mature products with level demand or seasonal demand without a trend. Values are:

Blank: Does not use this method.

1: Uses the Last Year to This Year formula to create summary forecasts.