Method 12

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

1. Exponential Smoothing with Trend and Seasonality

Specify which type of forecast to run. This forecast method calculates a trend, a seasonal index, and an exponentially smoothed average from the sales order history. The system then applies a projection of the trend to the forecast and adjusts for the seasonal index.

This method requires months best fit plus two years of sales data and is useful for items that have both trend and seasonality in the forecast. Use the processing options to enter the alpha and beta factor rather than have the system calculate them. Values are:

Blank: Does not use this method.

1: Calculates the best fit forecast.

12: Uses the Exponential Smoothing with Trend & Seasonality method to create detail forecasts.

2. Alpha Factor and 3. Beta Factor

Specify the alpha factor or beta factor, smoothing constants that the system uses to calculate the smoothed average for the general level or magnitude of sales. You can enter any amount, including decimals, from zero to one.

4. Seasonality

Specify whether the system includes seasonality in the calculation. Values are:

0: Does not include seasonality.

1: Includes seasonality.

Blank: Does not include seasonality.