Methods 9

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. Weighted Moving Average

Specify which type of forecast to use. The Weighted Moving Average forecast formula is similar to Method 4: Moving Average formula, because it averages the previous number of months of sales history indicated in the processing options to project the next month's sales history. However, with this formula you can assign weights for each of the prior periods in a processing option. This method requires the number of weighted periods selected plus periods best fit data. Similar to Moving Average, this method lags demand trends, so this method is not recommended for products with strong trends or seasonality. This method is useful for mature products with demand that is relatively level. Values are:

Blank: Does not use this forecast.

1: Calculates the best fit forecast.

09: Uses the Weighted Moving Average formula to create detail forecasts.

2. One Period Prior through 13. Twelve Periods Prior

Specify the weight to assign to one period through 12 periods prior for calculating a moving average. Enter the number to use or select it from the Calculator.

14. Periods to Include

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