1. Working with Predictive Planning in Smart View
  2. Predictive Planning Forecasting and Statistical Descriptions
  3. Forecasting Method Selection and Technique

Forecasting Method Selection and Technique

Predictive Planning uses the following process for forecasting method selection:

  • All of the nonseasonal forecasting methods and the ARIMA method are run against the data.

  • If the data is detected as being seasonal, the seasonal forecasting methods are run against the data.

  • The forecasting method with the lowest error measure (for example, RMSE) is used to forecast the data.

Predictive Planning uses only standard forecasting for time-series forecasting to select the best method. Standard forecasting uses the error measure between the fit values and the historical data for the same period. (Other methods, such as simple lead, weighted lead, and holdout are not used.)