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Former Member
Apr 28, 2009 at 04:49 AM

Basic value & MAD calculation in Forecasting

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Dear All,

Can some body explain the logic of basic value calculation in forecasting.

I have a material with following consumption values,

Month Cons value

4.2009 220

3.2009 170

2.2009 210

1.2009 230

12.2008 200

11.2008 180

10.2008 230

9.2008 230

8.2008 170

7.2008 220

6.2008 170

5.2008 180

Forecast model D (constant model) with alpha factor 0.2.

When I execute forecast the Basic value is shown as 202.72 & MAD value 23.

Can anybody explain in detail in how these values are calculated.

Regards,

KSR