<?xml version="1.0" encoding="utf-8"?>
<Session ID="/baanerp/wh/ina/whina2100m000" xml:lang="en">
   <Header>
      <Title>Forecast Methods (whina2100m000)</Title>
   </Header>
   <HelpTopic>
      <AimSection>
         <Paragraph>Use this session to list and maintain the <Link href="/baanerp/wh/glossary/glossary#000322" role="glossary">forecast methods</Link>.</Paragraph>
      </AimSection>
      <GeneralSection>
         <List>
            <ListIntro>For each user defined forecast method, you can choose one
			 of the following methods:</ListIntro>
            <ListItem> 
               <GUIRef href="/baanerp/tc/domains/fmod#mov.aver" role="option">Moving Average</GUIRef>
            </ListItem>
            <ListItem> 
               <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef>
            </ListItem>
            <ListItem> 
               <GUIRef href="/baanerp/tc/domains/fmod#cons.pryr" role="option">Previous Year's Calculation</GUIRef>
            </ListItem>
            <ListItem> 
               <GUIRef href="/baanerp/tc/domains/fmod#last.per.dem" role="option">Last Period's Demand</GUIRef>
            </ListItem>
         </List>
         <Paragraph>Forecast method codes can be linked to items, in the <GUIRef href="/baanerp/wh/wmd/whwmd4100s000" role="session">Item - Warehousing (whwmd4100s000)</GUIRef> session or to items and warehouse combinations in the <GUIRef href="/baanerp/wh/wmd/whwmd2110s000" role="session">Warehouse - Item (whwmd2110s000)</GUIRef> session.</Paragraph>
      </GeneralSection>
      <RelatedTopics>
         <SectionTitle>Related topics</SectionTitle>
         <RelTopic>
            <Link href="/baanerp/wh/onlinemanual/000005" role="manual">To calculate demand forecast for each period</Link>
         </RelTopic>
      </RelatedTopics>
   </HelpTopic>
   <Fields>
      <FieldHelp ID="whina200.cfmd">
         <Header>
            <Title>Forecast Method Code</Title>
         </Header>
         <FuncDesc>The code of the <Link href="/baanerp/wh/glossary/glossary#000322" role="glossary">forecast method</Link>.</FuncDesc>
      </FieldHelp>
      <FieldHelp ID="whina200.fmod">
         <Header>
            <Title>Forecast Method</Title>
         </Header>
         <FuncDesc>A technique used to forecast the demand for items.</FuncDesc>
         <SimpleSection>
            <List>
               <ListIntro>The following forecast methods are available:</ListIntro>
               <ListItem>
                  <GUIRef href="/baanerp/tc/domains/fmod#mov.aver" role="option">Moving Average</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/domains/fmod#cons.pryr" role="option">Previous Year's Calculation</GUIRef>
               </ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/tc/domains/fmod#last.per.dem" role="option">Last Period's Demand</GUIRef>
               </ListItem>
            </List>
         </SimpleSection>
      </FieldHelp>
      <FieldHelp ID="whina200.qper">
         <Header>
            <Title>Number of Periods for Moving Average</Title>
         </Header>
         <FuncDesc>Number of periods for calculating the <Link href="/baanerp/ti/glossary/glossary#MovingAverag_ti" role="glossary">moving average</Link>.</FuncDesc>
      </FieldHelp>
      <FieldHelp ID="whina200.mqdp">
         <Header>
            <Title>Minimum Number of Periods of History Demand</Title>
         </Header>
         <FuncDesc>The minimum number of periods for calculating the history
		  demand.</FuncDesc>
      </FieldHelp>
      <FieldHelp ID="whina200.pbst">
         <Header>
            <Title>Number of Periods Backward in Previous Year</Title>
         </Header>
         <FuncDesc>The number of periods backward in previous year used to
		  calculate the forecast.</FuncDesc>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>You can only specify the <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.pbst" role="manual">Number of Periods Backward in Previous Year</GUIRef> if the forecast method is <GUIRef href="/baanerp/tc/domains/fmod#cons.pryr" role="option">Previous Year's Calculation</GUIRef>.</Paragraph>
         </Note>
      </FieldHelp>
      <FieldHelp ID="whina200.pfor">
         <Header>
            <Title>Number of Periods Forward in Previous Year</Title>
         </Header>
         <FuncDesc>The number of periods forward in the previous year used to
		  calculate the demand forecast.</FuncDesc>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>You can only specify the <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.pfor" role="manual">Number of Periods Forward in Previous Year</GUIRef> if the forecast method is <GUIRef href="/baanerp/tc/domains/fmod#cons.pryr" role="option">Previous Year's Calculation</GUIRef>.</Paragraph>
         </Note>
      </FieldHelp>
      <FieldHelp ID="whina200.smff">
         <Header>
            <Title>Smoothing Factor for Demand Forecast</Title>
         </Header>
         <FuncDesc>The <Link href="/baanerp/td/glossary/glossary#SmoothFactor_td" role="glossary">smoothing factor</Link> for the demand forecast. You must specify the smoothing factor if the forecast
		  method is <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef>.</FuncDesc>
         <SimpleSection>
            <Paragraph>The smoothing factor for the demand forecast indicates to
			 what extent the difference between actual issue and the forecast in a certain
			 period is included in the calculation of the demand forecast.</Paragraph>
            <Paragraph>The formula that is used by the forecast method <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef> to calculate the demand forecast is as follows:</Paragraph>
            <Formula space-and-orientation="indented-estimated">
               <Paragraph> nf = pf + s (ai -pf)</Paragraph>
               <FigLegend>
                  <LegendEntry>
                     <Symbol>nf</Symbol>
                     <Desc>new forecast</Desc>
                  </LegendEntry>
                  <LegendEntry>
                     <Symbol>pf</Symbol>
                     <Desc>previous forecast</Desc>
                  </LegendEntry>
                  <LegendEntry>
                     <Symbol>ai</Symbol>
                     <Desc>actual issue of previous period</Desc>
                  </LegendEntry>
                  <LegendEntry>
                     <Symbol>s</Symbol>
                     <Desc>smoothing factor</Desc>
                  </LegendEntry>
               </FigLegend>
            </Formula>
            <Paragraph>A low smoothing factor results in a high degree of
			 smoothing. The smoothing factor is at least 0.01 and not greater than 1.
			 Usually, the smoothing factor is between 0.1 and 0.3.</Paragraph>
         </SimpleSection>
      </FieldHelp>
      <FieldHelp ID="whina200.smfe">
         <Header>
            <Title>Smoothing Factor for Forecast Error</Title>
         </Header>
         <FuncDesc>The <Link href="/baanerp/td/glossary/glossary#SmoothFactor_td" role="glossary">smoothing factor</Link> for the forecast error.</FuncDesc>
         <SimpleSection>
            <Paragraph>The smoothing factor for the forecast error is one of the
			 factors in the formula for the calculation of the absolute and relative
			 forecast error. The absolute and relative forecast errors are only calculated
			 in the demand forecast calculation, if the forecast method is <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef>.</Paragraph>
            <Paragraph>The absolute forecast error is used in the calculation of
			 the safety stock in the <GUIRef href="/baanerp/wh/ina/whina2202m000" role="session">Calculate Demand Forecast (whina2202m000)</GUIRef> session.</Paragraph>
            <Paragraph>The absolute and relative forecast errors are used in the
			 calculation of the tracking signal.</Paragraph>
         </SimpleSection>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>If the forecast method is <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef>, the <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.smfe" role="manual">Smoothing Factor for Forecast Error</GUIRef> must be greater than or equal to 0.01.</Paragraph>
         </Note>
      </FieldHelp>
      <FieldHelp ID="whina200.ltsi">
         <Header>
            <Title>Smoothing Factor</Title>
         </Header>
         <FuncDesc>If this check box is selected, a signal is displayed
		  when the smoothing factor is used. This field is only relevant in case of a
		  demand forecast calculated using the forecast method <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef>. Sudden changes in the demand will make forecasts lag behind
		  the actual demand. A tracking signal will signal such deviations.</FuncDesc>
         <SimpleSection>
            <Paragraph>The tracking signal factor is calculated as follows:</Paragraph>
            <Paragraph>
               <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="48" width="369"
                         SRC="../images/tr_graph_whina2100m000.jpg"
                         alt="[...]"/>
            </Paragraph>
            <Paragraph>If the tracking signal factor is larger than the critical
			 tracking signal factor entered, this is caused by a sudden change in demand.
			 The <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.smfe" role="manual">Smoothing Factor for Forecast Error</GUIRef> field will then be too low for the forecast to react to
			 incidental disturbances. In that case the calculation must be based on the
			 tracking signal factor rather than the <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.smfe" role="manual">Smoothing Factor for Forecast Error</GUIRef> field.</Paragraph>
            <Paragraph>As soon as the tracking signal factor is less than the
			 critical tracking signal factor, the value in the <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.smff" role="manual">Smoothing Factor for Demand Forecast</GUIRef> field will be used again.</Paragraph>
         </SimpleSection>
      </FieldHelp>
      <FieldHelp ID="whina200.ctsi">
         <Header>
            <Title>Critical Tracking Signal Factor</Title>
         </Header>
         <FuncDesc>The minimum and critical factor for initiating the tracking
		  signal.</FuncDesc>
         <SimpleSection>
            <Paragraph>This field is only relevant in case of a demand forecast
			 calculated using the forecast method <GUIRef href="/baanerp/tc/domains/fmod#exp.smooth" role="option">Exponential Smoothing</GUIRef>. Sudden changes in the demand will make forecasts lag behind
			 the actual demand. A tracking signal will signal such deviations.</Paragraph>
            <Paragraph>The tracking signal factor is calculated as follows:</Paragraph>
            <Paragraph>
               <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="48" width="369"
                         SRC="../images/tr_graph_whina2100m000.jpg"
                         alt="[...]"/>
            </Paragraph>
            <Paragraph>If the tracking signal factor is larger than the critical
			 tracking signal factor entered in the current field, this is caused by a sudden
			 change in demand. The <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.smfe" role="manual">Smoothing Factor for Forecast Error</GUIRef> field will then be too low for the forecast to react to
			 incidental disturbances. In that case the calculation must be based on the
			 tracking signal factor rather than the <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.smfe" role="manual">Smoothing Factor for Forecast Error</GUIRef> field.</Paragraph>
            <Paragraph>As soon as the tracking signal factor is less than the
			 critical tracking signal factor, the value in the <GUIRef href="/baanerp/wh/ina/whina2100m000#whina200.smff" role="manual">Smoothing Factor for Demand Forecast</GUIRef> field is used again.</Paragraph>
         </SimpleSection>
      </FieldHelp>
   </Fields>
</Session>