Why is Last Years Seasonal Index Not Applicable Now?

▤ Summary

The result of the calculation (product base forecast x seasonal index) can be used to determine the inventory needed to support sales during that time. For the inventory to be ordered correctly, the current year’s fiscal week seasonal index values must be adjusted. As the Memorial Day holiday occurs at different times each year, the demand forecast will be affected. Therefore, if the wrong data is included in the sales history the demand forecast will be too low or too high depending on the timing of the holiday. Lost sales, missed service goals, lower gross margin, and higher safety stock.

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Data Profits

$1M to $5M