Method 7-8

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. Second Degree Approximation

Specify which type of forecast to run. This forecast method uses the Second Degree Approximation formula to plot a curve based on a specified number of sales history periods. You specify the number of sales history periods in the Number of Periods processing option to project the forecast. This method adds the period's best fit and the number of periods, and then the sum multiplies by three. This method is not useful for long term forecasts. Values are:

Blank: Does not use this method.

1: Uses the Second Degree Approximation formula to create summary forecasts.

2. Number of Periods

Specify the number of periods to include in the Second Degree Approximation forecast method. Enter the number to use or select it from the Calculator.

3. Flexible Method

Specify which type of forecast to run. This forecast method specifies the period's best fit block of sales order history starting n months prior and a percent increase or decrease with which to modify the forecast. This method is similar to Method 1: Percent Over Last Year, except that you can specify the number of periods that you use as the base. Depending on what you select as n, this method requires period's best fit plus the number of periods that you specify in the Number of Periods processing option. This method is useful when forecasting products with a planned trend. Values are:

Blank: Does not use this method.

1: Uses the Flexible Method formula to create summary forecasts.

4. Number of Periods

Specify the number of periods before the best fit that you want to include in the Flexible Method calculation. Enter the number to use or select it from the Calculator.

5. Percent Over Prior Period

Specify the percent of increase or decrease for the system to use. 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.