How to use weighing profile with strategy 14 in forecasting

[Former Member]

Hello,

I am trying to use weighted moving average method for forecasting.

I have one year of history with a monthly bucket. Hence I have 12 periods in history.

However I want to give 60% weightage to last 6 months (starting from today) and 40% to rest of the 6 months.

What is the significance of start date there? What if I dont mention any value in start date? As I understand, start date defines the begining of the periods. If I dont mention any start date, then system calculates start date as the begining of the history horizon, i.e. 12 months before today.

While creating the weighting profile, can I define 2 periods there with a weight as Per1=40, per2=60? Or do I need to define 12 periods even in weighting profile? If I define 12 periods then can I define the weights as

Per	Wt
1	40
2	40
3	40
4	40
5	40
6	40
7	60
8	60
9	60
10	60
11	60
12	60

Is it mandatory that the sum of the weights should be equal to 100?

Any pointer would be very helpful.

Regards

Manotosh

[Former Member · Accepted solution]

Hello Mantosh,

You can very well define your weights as above and that will work fine in your case as you have only

12 intervals.

Also the sum of your weights may not be 100%.

The calculation is done as per the formulae given in the link.

http://help.sap.com/saphelp_apo/helpdata/en/ac/216b7d337b11d398290000e8a49608/content.htm

Hope this helps you

Thanks & Regards,

Anurag