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Diagnosis The process of optimizing the forecast model parameters is known asmodel initialization. A sufficient number of historical values need tobe present before the system can carry out model initialization. Thisnumber varies depending on the forecast model: Model ,,No. of historical values Constant model ,,1 Trend model ,,3 Seasonal model ,,1 season Seasonal trend model ,,1 season + 3 2nd-order exp. smoothing,,3 Moving average ,,1 Weighted moving average ,,1 System Response The system cannot carry out the forecast because there are not enoughhistorical values for the chosen forecast model. Procedure If possible, choose a forecast model for which there are enoughhistorical values. |