Seasonal Model

[Former Member]

Hi,

Can any one please explain me few things about seasonal model.

How the number of seasons affect it ?

what is the role of gamma in this? What will happen if we give the value of gamma to be 1 ?

Regards,

Prabhat

[Former Member]

Hi Prabhat,

Gamma value is a seasonal component for smoothing factor

These parameters are optional. All smoothing factors have a default value of 0.3

which is SAP recommendation. If it is more than one, it will affect the

seasonality component and the seasonal trend will not have the correct

reflection of its value.

Gamma factor does the smoothing factor for the seasonal indices whose value

is between 0 to 1 and not equal to 0 or 1.

For calculations with this gamma values, use the below link

http://help.sap.com/saphelp_scm70/helpdata/EN/ac/216b74337b11d398290000e8a49608/frameset.htm

Regards

R. Senthil Mareeswaran.

[Former Member]

Hi Prabhat,

Under seasonal model, you will define various seasons like

autumn, spring, summer, winter etc.,

Generally, the forecast strategy 31 or 41 is used to determine a seasonal, or seasonal

trend model

You can use the trend, seasonal or seasonal trend model with first-order exponential

smoothing for time series that have trend-like patterns and/or seasonal variations.

The system uses the gamma factor to smooth the seasonal index in a seasonal

or seasonal trend model.

Make an entry if you wish the gamma factor to be other than 0.3. Otherwise, a

gamma factor of 0.3. is used automatically.

Regards

R. Senthil Mareeswaran.

[Former Member]

Hi Senthil,

How the value of gamma affect the result? In what way ? If I give 1 then what will happen?

Regards,

Prabhat Sahay