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Seasonal Profile
A seasonal pattern or correction that is applied to a normal forecast to adjust for seasonal variations. Seasonal Profiles contain multipliers for each slice of the year. Each slice's final forecast value is calculated by multiplying the base forecast value by the slice's seasonal multiplier. Seasonal profiles can be applied to bias any basic forecast. Seasonal profiles are an integral part of Winters Multiplicative demand forecasting. Each SKU forecasted with Winters Multiplicative uses a private seasonal profile on an ongoing basis.
For seasonal profiles, a seasonal index is used to bias the standard forecast and is calculated relative to the average demand. It consists of 12 slices (for monthly forecasting) or 52 slices (for weekly forecasting) that indicate the deviation from the average demand. If a slice equals the average slice then the index is 1.0. If a slice is half the average slice, then the index would be 0.5. If the slice is twice the average slice, then the index is 2.0. The total of all indices adds up to 12 (for monthly forecasting) or 52 (for weekly forecasting).
Deseasonalized history is used as an input in the forecast calculation for all of the demand based forecast methods. The total demand that is used to calculate deseasonalized history is defined as:
Total Demand = Demand + Adjustment(Outlier or User) + Copy Demand
The forecast that was calculated using deseasonalized history is then multiplied by the seasonal index of the slice to get the final forecast.
Year 1
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Avg
Demand
10
12
14
12
11
14
12
14
13
15
12
12
12.5
Seasonal Index
0.69
0.98
1.46
0.98
0.98
0.98
0.29
0.49
1.46
1.93
1.27
0.49
Deseasonalized History
14.49275
12.2449
9.589041
12.2449
11.225
14.29
12.5
28.571
8.904
7.77202
9.44882
22.449
13.64393
Average (Forecast)
9.414311
13.37105
19.92014
13.37105
13.37105
13.37105
3.95674
6.685525
19.92014
26.33278
17.32779
6.685525
Alpha
0.1
Base Forecast
14.49275
14.26797
13.80008
13.64456
13.40255
13.49087
13.39178
14.90975
14.30918
13.65547
13.2348
14.15622
Single Exponential
9.767791
13.87309
20.66808
13.87309
13.87309
13.87309
4.105303
6.936547
20.66808
27.3215
17.9784
See also
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