Methods 7-8

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. Second Degree Approximation

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

Blank: Does not use this method.

1: Calculates the best fit forecast.

07: Uses the Second Degree Approximation formula to create detail forecasts.

2. Number of Periods

Specify the number of periods to include in the approximation. Enter the number to use or select a number from the Calculator.

3. Flexible Method

Specify which type of forecast to run. This forecast method specifies the periods best fit block of sales order history starting n months prior and a percentage increase or decrease with which to modify it. 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 periods best fit plus the number of periods indicated in the processing options of sales data. This method is useful for a planned trend. Values are:

Blank: Does not use this method.

1: Calculates the best fit forecast.

08: Uses the Flexible method to create detail forecasts.

4. Number of Periods

Specify the number of periods before the best fit that you want to include in the calculation. Enter the number to use or select a number 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. You can enter any percent amount, however, the amount cannot be a negative amount.