What Is a Base Period?
The Base Period defines the historical window used in the calculation. The system automatically determines whether demand is calculated daily, weekly, or monthly based on the selected period.
Daily-Based Periods
Used when the Base Period is:
Last 7 Days
Last 14 Days
Last 30 Days
Rules:
Uses completed calendar days
Counts backward from yesterday
Today is excluded
Weekly-Based Periods
Used when the Base Period is:
More than 30 days up to 180 Days
Demand is grouped into completed 7-day blocks
Weeks do not depend on calendar week boundaries
Each block represents exactly 7 completed days
Monthly-Based Periods
Used when the Base Period is:
Year-to-Date (YTD) or Custom periods over 180 days
Rules:
Only completed calendar months are included
Months must start on the first day and end on the last day
Simple Moving Average (SMA)
How It Works
Simple Moving Average treats all historical periods equally.
Formula:
Forecast Demand = (D1 + D2 + D3 + … + Dn) ÷ n
Where:
D1 = most recent completed period
Dn = oldest included period
n = total number of completed periods
The result is rounded to the nearest whole number.
When to Use SMA
Stable demand patterns
Minimal seasonality
When you want a straightforward average
Weighted Moving Average (WMA)
How It Works
Weighted Moving Average assigns higher importance to recent demand using linear weights.
Formula:
Forecast Demand = (D1 × w1) + (D2 × w2) + … + (Dn × wn)
Where:
The most recent period has the highest weight
Weights decrease linearly for older periods
The sum of all weights equals 1
Weights are system-defined and cannot be edited.
When to Use WMA
Demand trends change over time
Recent sales are more predictive
You want faster reaction to demand shifts
Custom Base Period Logic
For Custom Base Periods:
≤ 30 days → daily calculation
31–180 days → weekly calculation
180 days → monthly calculation