Different results with R-Triple Exponential Smoothing and SAP Triple Exponential Smoothing

[Former Member]

Hi,

it seems like the Funktions for R-Triple Exponential Smoothing and the SAP Version Triple Exponential Smoothing are calculating different. What is the difference between the funktions and why is there a difference?

greetings

Cherry

[Boris · Accepted solution]

Hi Anni,

the difference is caused by the used formulas. The SAP Version of the triple exponential smoothing is using the multiplicative method of Holt/Winters. The R Version is using this method as well, but the formula for the saisonal values is different.

Another reason can be the different setup for the inital phase for the ex-post time periode. SAP is using other formulas than R, too. You can find them here: http://help.sap.com/hana/SAP_HANA_Predictive_Analysis_Library_PAL_en.pdf

The initial values for R are based a decompensation of time series.

Which algorithm is best for your data depends on the forecast parameters like MAD, MAPE etc.

greetings

boris

[Henry_Banks]

Hi,

Please could you give us an indication of the order of magnitude by which the output differs?

regards,

H