Method Using Static Seasonality Indices

1 Method Using Static Seasonality Indices (Hillier and Lieberman, 2001) 

A straightforward approach to incorporate seasonality and trend is to combine the approaches for seasonality discussed in Section 2.5 and one of the methods for trend discussed in Section 2.6. The basic steps of such an approach are as follows  

Step 1 Compute the seasonality indices as discussed in Section 2.5. 

Step 2 Using the seasonality indices, compute the deseasonalized demands. 

Step 3 Apply one of the methods discussed in Section 2.6 to incorporate trend, on the deseasonalized demand data. 

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