1. Working with Planning
  2. Predictive Planning Forecasting and Statistical Descriptions
  3. Classic Time-series Forecasting
  4. Classic Seasonal Forecasting Methods
  5. Damped Trend Multiplicative Seasonal Method

Damped Trend Multiplicative Seasonal Method

Separates a data series into seasonality, damped trend, and level; projects each forward; and reassembles them into a forecast in a multiplicative manner.

This method is best for data with a trend and with seasonality. It results in a curved forecast that flattens over time and reproduces the seasonal cycles.

Figure A-11 Typical Damped Trend Multiplicative Data, Fit, and Forecast Curve


Upward trending, amplitude increasing, cyclical graph of damped trend multiplicative historical and forecasted data